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The Thanet councillor caught up in a row over the sale of products donated to charity for an election fighting fund instead won't face any action from her local party.
Karen Constantine has apologised after arranging a sale of products donated to charity by the high-street chain Lush to raise funds to help her campaign in the forthcoming county council election.
It is understood that the local Labour party met on Friday to discuss the issue and were satisfied by the account of events provided by Ms Constantine, who reiterated her apology.
The row centred on the claim that some of the donated products were sold at a table sale in a pub in Ramsgate that was publicly and openly promoted as a fund-raising event for Labour - with one Facebook posting that described it as "Lush for Labour."
It was only after concerns were raised that the products had been donated by Lush to give to charities helping the homeless and other vulnerable groups that Cllr Constantine and her agent announced the money raised - £415 - would not be kept for election campaign expenses after all.
Instead they announced the money would, after all, be passed on to local charities.
Sources say that the local party accepted her account of events and an apology and agreed a motion that no further action should be taken.
However, that may not draw a line under the saga as it is understood that the county Labour party and regional representatives are examining the events.
There is said to be some disquiet that the embarrassing episode could cast a shadow over the party's county council campaign and will be exploited by the other parties.