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The decision came despite a watchdog report finding major failings by police investigating the case.
The Attorney General has refused a fresh inquest into the murder of councillor Patsy Kelly, according to a statement on behalf of his family.
Mr Kelly was abducted and murdered in 1974.
The nationalist councillor was shot dead almost 50 years ago after being abducted in County Tyrone.
The family of a murdered Catholic man found to involve collusive behaviour by police have voiced their dismay and hurt after a request for a new inquest was rejected.