Former Swansea Council leader Lawrence Bailey could be investigated by the Local Government Ombudsman over pornographic images allegedly found on his council laptop.
A police report on the claims has been handed to the council which has forwarded it to the ombudsman to see if the councillors' code of conduct has been broken and if any action needs to be taken.
The report follows Councillor Bailey's arrest earlier this year after claims illegal images were discovered on his laptop. After a three month probe detectives said that no charges would be pursued, but that a report on their findings would be handed to the council. If the ombudsman decides there is a case to answer he has the power to refer the matter to the council's standards committee.
It can discipline any councillor found guilty of wrongdoing and suspend them if it feels necessary.Alternatively the ombudsman can pass the matter on to the Adjudication Panel for Wales - an independent body that forms tribunals for dealing with breaches of councillors' code of conduct.
Councillor Bailey was originally arrested in May after concerns were raised about images found on his council laptop. Officers examined the laptop and seized computer equipment from the 51-year-old's Birchgrove home.He was bailed while detectives investigated the claims.
Detective Chief Inspector Peter Azzopardi said in August that the Crown Prosecution Service would not be pursuing any charges against Councillor Bailey.
He added that a report on the police's findings would be referred to Swansea Council to take any action it thought appropriate.
A spokesman for Adam Peat, the Public Services Ombudsman for Wales, said that the body did not comment on ongoing investigations and would not confirm if it was looking at Councillor Bailey's case.
Councillor Bailey said today: "I have been advised to make no comment."