Former Moreton Bay Regional Council mayor Allan Sutherland was accused of manipulating the timing and scope of a project affecting land he bought in Burpengary and lobbying for change in planning scheme amendments for personal gain.
He was stood down as mayor after being charged by the Crime and Corruption Commission (CCC) in December 2019.
A committal hearing was held last year with Queensland Treasurer Cameron Dick - who was previously the planning minister - taking the stand.
But the Crown had decided not to proceed further with the two charges of misconduct in public office due to a lack of evidence, prosecutor Sarah Farnden told the Brisbane Magistrates Court on Thursday.
She said the decision came after considering submissions from defence barrister Saul Holt.
It comes after a state parliamentary committee last month called for a royal commission into the corruption watchdog in a scathing report.
The recommendation followed a probe after prosecutors dropped charges against eight councillors - including the former mayor - of Logan.
Mr Sutherland - a councillor of 25 years - said the CCC was "out of control".
"The organisation is broken; there is no doubt about that," the 65-year-old told reporters outside court.
"They have systemic problems throughout their organisation and I'll be working with whoever it takes to see that another mayor doesn't have to go through what I've been through."
Mr Sutherland said change could not happen with the "current top echelon in place" and the public would be appalled at the way the CCC operated, which included recording 8000 of his phone calls.
"That's a fishing trip," he added.
"They're not after anything else, but they just sit on the end of your phone listening for months in, months out."
In April prosecutors withdrew charges against former Logan mayor Luke Smith, former deputy mayor Cherie Dalley and councillors Jennifer Breene, Russell Lutton, Phil Pidgeon, Trevina Schwarz, Laurence Smith and Stephen Swenson.
Those charges came when the council sacked then-chief executive Sharon Kelsey after she passed information to the commission about alleged misconduct by Mr Smith.
In October Gold Coast police officer Superintendent Michelle Stenner was acquitted of perjury after a second trial when a jury found none of three charges of lying to the CCC could be proven.
The CCC has been asked for comment.
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