Dunedin City Council staff have been cleared of any wrongdoing in the sale of leftover items from the city's Chinese Gardens.
After the gardens were completed in 2008 leftover items were stored in a shed, which was later found to be contaminated with asbestos.
The shed and any contaminated items were meant to be demolished, but some wound up at a second-hand building demolition yard for sale.
Police have found council staff had no knowledge of the sale and did not benefit financially.
They found the contractor involved in the disposal had stepped outside their contract with the council.
The council has changed its procedures as a result.