Charges against Qld councillors dropped

Phillip Pidgeon (left), with Russell Lutton, says the legal turmoil had a severe affect on his life. (AAP)

Calls have been made for legislation changes after fraud charges against seven former Queensland councillors and an ex-mayor were dropped following more than two years of legal wrangling.

The Logan City councillors were charged by the state's corruption watchdog, but prosecutors officially discontinued the fraud charges at a hearing in Brisbane Magistrates Court on Wednesday.

Former mayor Luke Smith, former deputy mayor Cherie Dalley and councillors Jennifer Breene, Russell Lutton, Phillip Pidgeon, Trevina Schwarz, Laurence Smith and Stephen Swenson all had fraud charges dismissed.

But Luke Smith was committed to stand trial in the District Court on two charges of misconduct in relation to public office.

The eight were all sacked from their positions, and an administrator appointed after the charges were laid by the Crime and Corruption Commission more than two years ago.

The charges related to the decision to sack former chief executive Sharon Kelsey four months after she gave information to the CCC about alleged possible misconduct by Luke Smith.

Days before terminating Ms Kelsey's employment, councillors were told it would be unlawful to do so because she made the disclosure, or because she had started Industrial Relations Commission proceedings.

The Local Government Association of Queensland on Wednesday called for an independent inquiry, compensation and a public apology for the "egregious misuse of the justice system".

"The unprecedented actions of the CCC in this case set about a chain of events that irreparably damaged the lives and reputations of those involved and disenfranchised the Logan community as a consequence of the sacking of the entire council in May 2019," chief executive Greg Hallam said.

"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 also called for the CCC chair to stand aside while an inquiry took place and the release of legal advice that led to charges being laid.

Asked whether they would take action, Mr Lutton said the councillors would take advice and "see where we can go".

"I have done 34 years as a local government representative for Logan," he told reporters.

The Logan City councillors were charged after the sacking of chief executive Sharon Kelsey in 2018. (AAP)

"I gave up a lot in that time and to have my reputation tarnished and snapped from beneath me at the whim of the government and others is soul-destroying."

Mr Lutton said the councillors had been slandered on Facebook and in the media and it was "totally unjustified".

An emotional Mr Pidgeon, who was a councillor for more than 20 years, said on Wednesday there needed to be "some form of making this right"

"We are all innocent of these charges and something needs to happen to make sure this does not happen again," he told reporters.

"This is unfair and unwarranted and I have never seen something like this happen in the history of Australia."

Mr Pidgeon said the ongoing legal turmoil had cost him his career, reputation and almost his marriage.

"Luckily my wife is here today - we are reconciling and trying to come through this," he added.

Ms Schwarz said "two years of hell" had been brought to an end

"I have stood terrified of the prospect of a lengthy jail sentence for voting according to my conscience and on the legal advice of some of Queensland's leading industrial lawyers to end the probation of (a) CEO," she added.

"The death of the presumption of innocence which has occurred to me and my fellow accused and now acquitted fellow councillors is appalling."

Queensland's current Local Government Minister and Deputy Premier Steven Miles wouldn't comment given the case will be referred back to the CCC after the DPP's decision.

"As this matter is still a matter for the Crime and Corruption Commission, it would be inappropriate to comment at this stage," a spokesperson for the minister said.

AAP has sought comment from the CCC and former local government minister Stirling Hinchliffe.

It's understood the corruption watchdog can formally discontinue the case or consider what, if any, alternative charges might be pursued.