There has been a second resignation at Dunedin City Council as a result of missing council cars.
Last month the council went to police with evidence that 152 fleet vehicles worth $1.5 million were sold over a decade, but none of the money went back to the council.
Police are now investigating the case which had been referred to the accounting firm Deloitte after the sudden death in May of a council manager, Brent Bachop.
The group manager for regulatory services, Kevin Thompson, has now resigned after 17 years at the council. Dunedin City Council says there is no indication he was involved in any fraud.
The city council's infrastructure manager, Tony Avery, resigned last week, saying although he was not involved in any fraud, the buck stops with him.