The inquiry into the Freeport development in Portugal has decided that the prime minister, Jose Socrates, has no case to answer and all proceedings against him will be abandoned.
In 2005 an anonymous letter alleged Socrates, when environment minister, had pulled strings and taken bribes to allow the development to go ahead.
“State prosecutors, after having studied all the elements gathered over all these years, have concluded that there is no reason to make any accusations against any politician or civil servant in the environment ministry of corruption, abuse of power, or illegal party financing,” said Socrates.
When the scandal broke it sparked investigations in both Portugal and Britain, where Freeport Developers are based. Prosecutor Candida Almeida has however charged two of the seven named people in the inquiry for attempted extortion. British police dropped their investigation in November.