A controversial north Queensland mayor accused of misleading voters about his army service has resigned.

Troy Thompson was suspended on full pay in November while the Queensland Crime and Corruption Commission (CCC) conducted an investigation.

Last week the local government minister, Ann Leahy, issued Thompson with a two-week show-cause notice to explain why he should not be dismissed from the role.

In a video posted on Facebook on Friday, Thompson announced that he had “formally resigned as mayor”.

“Let me be absolutely clear about this, this resignation is not an admission of wrongdoing,” he said.

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“It is a deliberate and principled stand to protect the democratic rights of the people of Townsville.

“Political interference has no place in our democracy. Only the community should decide who leads this city.”

For 18 months Thompson had resisted widespread, bipartisan pressure for him to step aside, including a unanimous vote of no confidence by Townsville councillors.

Thompson has repeatedly used Facebook in recent days to allege the local government minister’s show-cause process has lacked natural justice.

In Friday’s video Thompson said his resignation renders the show-cause notice “moot” as there is “no office holder left to sanction”.

“Nothing in the law prevents me from running again,” he said.

“The only disqualifications relate to bankruptcy and criminal convictions, none of which apply to me. I will therefore nominate in the byelection so people of Townsville, and only the people of Townsville, can decide who should lead their city.”

Thompson called on Leahy to dissolve the Townsville city council and for an investigation into financial mismanagement and corruption at the local government body.

On Friday, Leahy said Thompson should report any complaints to the CCC or the office of the independent assessor.

Leahy issued last week’s show-cause notice after a briefing from the corruption commission in August.

She said Townsville electors “deserve that information” before casting a vote, but that the CCC “has specifically restricted me from releasing that information”.

“The avenue for the release of the information sits with the CCC,” she said.

Leahy said she hoped to have a byelection date by early next week and confirmed that Thompson was eligible to stand.

The acting Townsville mayor, Anne-Maree Greaney, said “the shadow of uncertainty and division that has been cast over our city and council” had been “lifted” by Thompson’s resignation.

Greaney said a byelection was required to be held within two months, and council would hold a special meeting on Monday to consider the voting methodology, subject to approval of the local government minister.

Thompson was backed by My Place Townsville in last year’s election. In 2020 he stood as a One Nation candidate for the state seat of Thuringowa, but was disendorsed by the party before election day.

During the election, he claimed to have spent five years in the army, including time at “SAS Swanbourne”, the Special Air Service base in Western Australia. In an interview with A Current Affair in May last year, he conceded he had served only three years as a reservist, largely in the catering corps.

“Those who know me know that I’ve had multiple concussions – 100 plus – and I suffer from epilepsy,” he told A Current Affair.

Thompson was also accused of exaggerating his qualifications.

He defeated long-term Townsville mayor Jenny Hill with a two candidate preferred vote of 52.62%.