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Oregon state employees put on administrative leave nearly 10 months ago over questions surrounding a state Department of Energy contract have been reinstated.

The Oregon Department of Administrative Services announced today that an exhaustive investigation by an independent legal counsel has cleared four state employees of any wrongdoing. In question was a $200,000 federal Energy Assurance Grant that was given to the Seattle-based engineering and consulting firm R.W. Beck. Of that money, $60,000 was subcontracted to a firm co-owned by Cylvia Hayes, the companion of Gov. John Kitzhaber.

Whistle-blowers, who have not been named, had alleged the federal contract had been awarded unfairly considering Hayes’ relationship with the then-former governor.

The four employees on leave, those close to the grant, were Mark Long, Joan Fraser, Paul Seesing and Shelli Honeywell. Long was serving as the interim director of the Department of Energy when the contract was awarded.

The issue first arose last August when the Oregon Department of Justice announced an investigation into the department’s contracting practices following the allegations. Even though media initially reported the justice department had wanted to terminate the employees, the department determined in December that it wouldn’t charge the employees with official misconduct.

After the justice department decision, then-Gov. Ted Kulongoski, who first informed authorities of the allegations, decided to hire Malher County Circuit Court Judge Frank Yrauguen to review the case and make a recommendation. Yrauguen’s report was not released.

Then earlier this spring, after Kitzhaber took office, the state brought on the Portland law firm Barran Liebman to conduct an investigation into the matter. After conducting an investigation, the firm recommended that the state reinstate the four employees to their regular jobs and that they receive no formal discipline.

Moreover, the law firm recommended that the state offer to hold name-clearing hearings for all four even though none of them face charges.

State Chief Operating Officer Michael Jordan said today the state will release all relevant and releasable documents concerning the case, including the law firm’s full investigation. Documents will be released during the coming weeks.

Tony Green, spokesman for Attorney General John Kroger, who oversees the justice department, said the department looks forward to the release of the Yraguen’s independent report and all of the other records in this case.