Former immigration minister Judy Sgro says she feels vindicated, after an exiled pizzeria owner retracted the sensational claims that led to her resignation from cabinet.

"I think I'm feeling it this morning," Sgro told CTV's Canada AM on Wednesday. "A huge sense of relief."

The day before, Sgro stood in the House of Commons to read a letter of retraction and apology by deported pizza shop owner Harjit Singh.

"This honourable institution should never be used to propagate smear campaigns... regardless of which side of the House you are on," Sgro said in comments that drew a standing ovation from members on all sides of the House.

Singh had alleged Sgro promised to help him resolve immigration problems in exchange for campaign assistance and free pizza.

Under fierce attack by the Opposition at the time, Sgro left cabinet to clear her name.

In her defence, she denied ever meeting the failed refugee claimant and launched a $750,000 suit for defamation and conspiracy against him, his daughter-in-law and two friends who had alleged Sgro was influence peddling.

All four have retracted their statements in documents released by Sgro's office and she has now dropped the defamation lawsuit, she said.

"I now admit that I did not have a meeting with Judy Sgro," Singh wrote in the letter dated May 10, released by Sgro's office.

"Further, at no time did Judy Sgro request any campaign assistance from me, nor did she help me with my immigration problems."

After a 17-year bid to win asylum in Canada, Singh was deported to India in February.

Conflict of Interest

Another letter sent to Sgro Tuesday by the federal ethics commissioner was less resounding in its vindication of the Liberal MP.

In his letter, Bernard Shapiro says the former minister was put in a conflict of interest by her staff -- on the file of a Romanian stripper seeking a work permit to extend her stay in Canada.

In his May 2 letter, Shapiro wrote that after reviewing a Statement of Fact, he believes that Sgro never met 25-year-old Alina Balaican and was unaware that she was a volunteer for her 2004 re-election campaign when the temporary residence permit was issued.

"On the other hand, it is also clear to me that while you were not aware of the volunteer status of Ms. Balaican, members of your staff did know of this," Shapiro wrote.

"Thus, your staff for whom you bear responsibility did, in fact, place you in a conflict of interest."

Shapiro noted that his final report is not yet complete, and could not predict when it might be ready.

Conservative immigration critic Diane Ablonczy's said Tuesday Sgro was far from cleared of conflict-of-interest allegations.

"Not by quite a bit. I think everyone's waiting for the ethics commissioner's report of his inquiry," she said.

But Sgro is confident that she is free of personal blame in the case. As far as she's concerned, the issues have been dealt with and can be put behind her.

"Whatever the opposition wants to do in their continued fishing expedition, I wish them luck."

Despite her recent experience, Sgro said she's not been put off politics.

"This is the best job in the world when I'm trying to make a difference for Canadians and for my riding. And it's discouraging, but politics is not an easy game."

The Ontario MP says she's now eager to get back to work helping her party's battered minority government in any way she can, even if that doesn't mean a return to cabinet.

"You know what? I'm proud to serve as a member of Parliament or whatever capacity the prime minister wants me to."

With a report from CTV's Roger Smith and files from The Canadian Press