The Crown Prosecution Service will not pursue a fraud charge against the former chief executive of the defunct charity the All Wales Ethnic Minority Association after the jury in his trial did not reach a verdict.
In a trial at Swansea Crown Court last month Nasir Malik was accused using more than £16,000 of government grants to the charity and money from the Big Lottery Fund to pay off his own credit card bills.
He was cleared of two of three counts of making a false representation, with the jury unable to reach a verdict on the third count.
After a hearing on Friday, it was decided this will not be pursued. A spokeswoman for the court said: "The prosecution does not seek a retrial."
Malik was involved in setting up Awema in 2010, but in 2012 he and the finance director were dismissed from the charity after a Welsh government investigation found "significant and fundamental" failures in its governance.