A Queensland court says there is not enough evidence to pursue fraud charges against former Logan City councillors.

In 2019, the Queensland Crime and Corruption Commission charged Logan City Mayor Luke Smith and seven other councillors with fraud over the dismissal of CEO Sharon Kelsey in 2018.

The fraud charges led to the sacking of Council.

However, this week the charges were dismissed in the Brisbane Magistrates Court, after the DPP decided not to proceed because of insufficient evidence.

Former Mayor Luke Smith had fraud charges against him dropped, but must still face trial on separate counts of misconduct in public office.

One of the sacked councillors, Trevina Schwarz, said she was put through “2 years of hell”.

“Almost 2 years to the day I was arrested by the CCC, fingerprinted and had my photograph taken and charged with fraud,” Ms Schwarz said in a statement following the decision.

“Because I voted not to extend the probation of then Logan CEO Sharon Kelsey because I thought she was not up to her $500K a year job.”

The Local Government Association of Queensland (LGAQ) has attacked the CCC for levelling the charges against the councillors.

LGAQ CEO Greg Hallam says the DPP’s decision vindicates the councillors.

“Careers, lives and reputations were ruined and a democratically elected council wrongly sacked before these erroneously laid charges could be properly tested by the courts,” Mr Hallam said.

The lobby has written to Premier Annastacia Palaszczuk and Attorney General Shannon Fentiman to request an independent review.

“We need an inquiry to prevent this happening to another Queensland community,” he said.

“We also have called upon the government to issue a full, unqualified apology to the seven councillors and to compensate them for the losses that they have incurred during this period,” he said.

A spokesperson for the Queensland government said LGAQ has the right to approach the Parliamentary Crime and Corruption Committee, which has oversight of the CCC, to complain.