Former Belfast councillor Jolene Bunting has launched a High Court bid to overturn her three-year ban on seeking re-election.
An appeal against the disqualification is being mounted amid confirmation that she will not be prosecuted over any allegations of fraud by misrepresentation.
Her challenge to the sanction imposed by the Northern Ireland Local Government Commissioner for Standards (NILGCS) is due to be heard later this year.
Ms Bunting, a former independent unionist councillor, was disqualified in February 2023 for breaching the code of conduct.
The watchdog found she had brought her position into disrepute by doctoring a payslip in a bid to obtain cash from far-right party Britain First.
It followed a complaint lodged by the group’s leader, Paul Golding.
He claimed his party sent Ms Bunting money to cover an alleged fine from Belfast City Council for a publicity stunt involving its former deputy leader, Jayda Fransen.
Ms Fransen had been filmed making a statement while wearing robes and sitting in the lord mayor’s chair at City Hall in 2018.
The tribunal was told that a £545 deduction in Ms Bunting’s council pay was actually because she exceeded the data allowance on her mobile phone.
Despite denying the allegations against her, the Commissioner held that she improperly used her position to secure financial advantage by amending the payslip to gain from Mr Golding and Britain First.
It has now emerged that she attended a PSNI station in May last year for a voluntary interview about the claims made by Mr Golding.
In December a decision was taken not to prosecute her for any alleged offences.
Following those developments lawyers representing Ms Bunting are pressing ahead with an attempt to clear her name.
The High Court was told that she intends to proceed with a challenge to her three-year ban from public office.
A judge agreed to list the case for full hearing in May.