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ALBANY - Staten Island District Attorney Dan Donovan has cleared state Independence Party chairman Frank MacKay of claims of a political quid pro quo to benefit his wife after an investigation that may have cost Donovan that party's important endorsement in the race for attorney general.

Donovan, the Republican candidate, had removed himself from consideration for the endorsement in July when he started the investigation based on a news report, saying he had to maintain the integrity of his office and its probe. The party has since endorsed Democrat Eric Schneiderman, the front-runner.

In an Oct. 4 letter Donovan's office confirmed Friday, the Republican prosecutor said he found "no credible evidence" to prompt criminal charges against MacKay or his wife.

The issue came up months ago in a borough where the Independence Party is a major factor. John Tabacco, a former Staten Island city councilman and company owner of All American Technologies, lent $10,000 to a company run by MacKay's wife, Kristin.

Donovan found the special election for a city council seat that Tabacco was seeking was "nonpartisan" and there were no formal party endorsements, eliminating any possible quid pro quo.

Frank MacKay said the allegation arose from an internal party squabble.

Donovan's letter says the loan, which has since been paid in full with interest, was between the companies in anticipation of a joint venture suggested months earlier by an unnamed third person, not Tabacco or either of the MacKays.

The Independence Party is the state's third largest party and an important line for Republicans running statewide given the Democrats' nearly 2-to-1 voter enrollment advantage. The Independence line is voted by many of its own 400,000 members and by other voters to cross party lines.

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