An investigating panel headed by Overall Deputy Ombudsman Orlando Casimiro said that after a series of clarificatory hearings, it found "no iota of evidence" against the poll officials.
It recommended that the criminal and administrative charges it had earlier against members of the Comelecs five-member bids and awards committee be dismissed for lack of probable cause.
The panel said the committees decision to award a contract to MegaPacific eSolutions Inc. for the purchase of nearly 200 ballot counting machines that cost P1.3 billion did not "constitute manifest partiality, evident bad faith or gross inexcusable negligence."
"Neither was it established that an unwarranted benefit, advantage or preference was extended" to MegaPacific, the panel said in a 52-page supplemental resolution.
Cleared were committee chairman Eduardo Mejos and members Jose Balbuena, Lamberto Llamas, Bartolome Sinocruz and Gideon de Guzman.
Comelec director James Jimenez said the poll officials felt vindicated but are not yet celebrating.
"The decision of the Ombudsman is what we have been saying all along. But we know this case will go all the way to the Supreme Court so we are tempering our enthusiasm and wait for what the Supreme Court (SC) has to say on the matter," Jimenez said. "I hope the public will take time to read the decision so that they will know the basis for the decision and not just say the officials were acquitted."
In 2003, the Comelec purchased nearly 200 ballot counting machines from MegaPacific. But the SC in January 2004 nullified the Comelecs contract with MegaPacific, citing irregularities in the contract awarding.
The court ordered the Ombudsman to investigate those involved for possible criminal liability.
In June, the Ombudsman recommended Comelec commissioner Resurreccion Borras impeachment as well as graft charges for alleged wrongdoing. It is still uncertain if Borra will likewise be cleared.
Panel member Assistant Prosecutor Marina Demeterio emphasized that the Comelecs poll automation deal remained null and void.
"We were only required to find probable cause to warrant the conviction for graft but we are not saying that the Supreme Court is wrong. Evidence tell us that there was no malice," she said.
Evidence showed that the bidding committee "misinterpreted the law on bidding," Demeterio said. "It is at best, a misinterpretation of law. We should always have a presumption of innocence."
Senate Minority Leader Aquilino Pimentel Jr., who has been pushing for action on the MegaPacific case, found the investigating panels latest findings "fishy."
"Apparently theres a lot of pressure that has been exerted on the Ombudsman for it to have come out with a rather startling ruling, considering that earlier the Ombudsman had recommended the prosecution of one commissioner," Pimentel said, referring to Borra.
Pimentel is considering filing a motion seeking reconsideration or going to the SC.
The idle ballot counting machines cannot be used in next years midterm elections in spite of the Ombudsman panels resolution.
The SCs January 2004 ruling inadvertently derailed government plans to modernize the countrys antiquated electoral system, which is riddled with opportunities for poll fraud. It takes election officials weeks to complete the counting of votes.
It forced election officials to revert to the manual counting of votes and initially sparked concern that the 2004 elections would be postponed.
Opposition lawmakers have been calling for the resignation of Comelec officials because of the electoral fraud allegations against President Arroyo, which sparked a political crisis that is still gripping the country.
Mrs. Arroyo has been under pressure since last year after she admitted having an inappropriate conversation with an unidentified election official believed to be former Comelec commissioner Virgilio Garcillano before Congress declared the winner. She denied manipulating the poll outcome. With Mayen Jaymalin, Marvin Sy