Councillor Brian Gordon dressed up for a private party
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Nelson Mandela has said he was not offended that a councillor "blacked-up" to attend a fancy dress party as the former South African President.
Brian Gordon, a councillor in Barnet, north London, was reported to the Commission for Racial Equality.
But a spokeswoman for Mr Mandela said he thought the prank was quite funny, only commenting that the councillor's choice of shirts was "rather awkward".
Mr Gordon, who has refused to comment, has been a councillor for nine years.
Mr Mandela's spokeswoman said: "We shouldn't be over sensitive about issues of this nature.
"Mr Mandela thought it was quite funny.
"In no way the character was harmed of Nelson Mandela. We can't find anything derogatory in someone dressing up, in fancy dress, portraying Nelson Mandela."
The row erupted when Mr Gordon sent a picture of himself in fancy dress to a reporter on a local newspaper.
Potential impact
For the private party, where it is tradition to wear fancy dress, he wore a Dashiki shirt, a beaded necklace and a traditional African hat.
Local Liberal Democrat activist Stieve de Lance has been leading calls for his sacking from Tory-run Barnet.
But the Conservative leader of Barnet Council, Mike Freer, said Mr Gordon had served his local area "irrespective of race or religion".
The Commission for Racial Equality said that councillors must be aware of the potential impact of their behaviour.