A second police investigation into the finances of Caerphilly County Borough Council is still ongoing.
In December last year a special public interest report from the Wales Audit Office concluded that payments totalling almost £220,000 to ‘buy out’ car and annual leave allowances were unlawful.
The payments, made early in 2012, were part of an agreement to compensate senior bosses who were giving up car and annual leave allowances to bring them in line with other workers.
The report said the decision to make the one-off payments was done without proper authority or clear recording of how the decision was made.
Gwent Police, after reviewing the report, referred the matter to Avon and Somerset Police.
It was the second time the force had made such a move.
In March last year a separate WAO report into unlawful pay rises for council bosses was referred to Avon and Somerset Police.
A spokesman for Avon and Somerset Police said the second investigation was still ongoing.