EDEN District Council leader Colin Nineham has resigned following an ongoing fraud investigation into a company he manages.

Mr Nineham’s decision was made after his arrest in connection with fraud allegations related to Eden Community Recycling, of which he is managing director.

Mr Nineham, who was elected to the council in 1999 and appointed leader in June 2008, has not been charged and is on bail until November 2009. He tendered his resignation at a special meeting of Eden District Council’s executive where the situation was discussed.

Eden’s deputy council leader Coun Keith Phillips said: “Coun Nineham offered his resignation to the executive as he wishes to concentrate on addressing the allegations against him and clearing his name.

“He did not wish the issues he is facing to reflect on the council’s reputation and his resignation will now go before a full council meeting at the earliest opportunity.”

A new leader will be appointed by full council. They will then nominate their executive which will require approval by full council.

There will be a by-election in Penrith West, the ward Mr Nineham represented.

“This is a difficult time for Coun Nineham and we understand his reasons for taking what must be a very difficult decision,” said Coun Glenys Lumley, joint deputy leader of the Council.

“The executive recognises how much time and effort he has put in during his time as leader and his contribution will be missed.

"We all want to place on record our appreciation for the work he has done for Eden in the role as leader.”