MPI Acting Animal Welfare Compliance Manager Peter Hyde said an MPI Animal Welfare Inspector made thorough enquiries about the alleged incident, but it was decided that proceeding to prosecution was not appropriate in this case.
"MPI was satisfied that the event was very unusual and unlikely to occur again," he said.
MPI would not name the two individuals involved in this case. The two ACO's involved no longer worked for the council. Council CE Wayne Jack said it was a sensible outcome.
"Napier City Council has, and had, strict protocols in place around euthanising animals and in this case, the protocols weren't adhered to. The matter was investigated internally and fully dealt with in 2015. We are pleased MPI has put it to rest."
The pound came under public scrutiny last year after claims were made about its conditions. An MPI investigation was launched following allegations of breaches of the Animal Welfare Act.
MPI has said the allegation about the pig had not fallen under the scope of MPI's previous review of the pound as it was a specific allegation of offending against the Animal Welfare Act.
The ministry had not been made aware of the allegation at the time of the review.
The pig in question had been caught on July 17 2015, after it was roaming through Napier streets, and had caused two car crashes on Taradale Rd.
According to information released to Hawke's Bay Today, the "Captain Cooker" pig was thought to have been held at the pound for around three days after this.
At about the third day, an ACO assessed the pig was distressed and recommended it be euthanised due to stress. An ACO told another ACO - who was on sick leave - about the pig.
The off duty ACO then allegedly offered to call an unidentified friend of his who was a pig hunter to kill the pig, and in a breach of protocol the off-duty ACO let his friend into the premises.
It was understood the friend was not a vet, employee, or contractor of the council, and had no authority to perform the euthanasia.Council stated it was understood the friend used a knife, and the method of "pig sticking" to kill the pig.
Also against NCCAC protocol, the off-duty ACO and his friend removed the carcass from the pound.
"There was a suggestion made to NCC that the carcass was taken to the friend's house for a training exercise on skinning, gutting and dissection. Apparently, the carcass was then disposed of into a skip bin, which was picked up with the kerbside collection."