The Leader of Essex County Council, Cllr David Finch, has called on former council leader Lord Hanningfield "to do the right thing" and pay back money the council says he owes Essex taxpayers - effectively writing the debt off.
Cllr Finch said he had accepted the recommendation of the Council's Audit Committee, which met on Monday, not to pursue legal action to recover nearly £51,000.
Lord Hanningfield has previously said he has no intention to pay the amount.
The committee, acting on advice from independent legal experts and the council external auditors, agreed with counsel's view that the cost of pursuing the case would be significant with uncertain chances of success.
Cllr Finch said: "This about doing the right thing. It is about choosing to spend money on providing care, education, and roads, instead of spending it lining the pockets of expensive lawyers.
"I've made sure this situation can never happen again and our governance is now second to none.
"But I am still as angry and frustrated about this situation as Essex taxpayers are.
"So I am calling again on Lord Hanningfield to do the right thing and repay the money he owes."
