In breaking news, Tony Avery has resigned from his management role at the Dunedin City Council.

Avery was the general manager of infrastructure and networks, and was responsible for overseeing Citifleet - currently the subject of a $1.5m fraud investigation.

Avery says he wasn't involved in the alleged fraud, or aware of it at the time, but accepts the buck stops with him.

Citifleet team leader Brent Bachop died suddenly in May, after being approached about discrepancies within the fleet.

Avery says he's saddened the actions of one dishonest staff member have sullied the good name and reputation of others.

He'll stay in his role until a replacement is found.

Avery joined the council in 2000.