No charges will be made over alleged fraud at Hounslow Homes, it has been revealed.
Four people were arrested in August over claims public money had been misspent by staff at the organisation, which manages council housing across the borough, between 2011 and last year.
But Hounslow Council today said it had been told by the Crown Prosecution Service no further action would be taken over the allegations.
A council spokeswoman said it understood prosecutions were not possible because of the way Hounslow Homes' senior management at the time had mishandled the early stages of the investigation.
Council leader Steve Curran said: "We are obviously disappointed by this outcome but now that Hounslow Homes is in the process of returning to the direct management of the council, we will ensure that all concerns about potential fraud that anyone might have are handled transparently and correctly.
"If anyone has any information about the alleged fraud that they would like to pass on, please do not hesitate to contact the council or the police."
Two employees were sacked and one resigned following an independent investigation commissioned by the council and Hounslow Homes, the findings of which were handed to police in January this year.
A report about the investigation will now go before councillors on the audit committee on December 11.
The decision by the CPS not to prosecute comes just over a week after councillors voted to close Hounslow Homes and take back control of housing services.
