The RCMP is finally closing the file on the Airbus affair after a decade-long investigation.

The RCMP had been investigating the former prime minister over allegations that he accepted kickbacks from a German company that sold $1.8-billion worth of 34 Airbus jetliners to Air Canada in 1988.

The affair began to make headlines shortly after Prime Minister Jean Chretien took power. At the time, letters from the Justice Department were leaked to the media alleging the Tories had been involved in a kickback scheme. Mulroney denied having any involvement in the affair and sued the Liberal government for libel.

The matter was settled out of court and Mulroney received an apology from the government.

The criminal investigation continued but on Tuesday, Mulroney's name was cleared in full. The RCMP said it was closing the file on the case without finding any evidence of wrongdoing.

"After an exhaustive investigation in Canada and abroad, the RCMP has concluded its investigation into allegations of wrongdoing involving MBB Helicopters, Thyssen and Airbus," an RCMP news release said.

"In October 2002, a charge of fraud was brought against Eurocopter Canada Ltd. (formerly MBB Helicopters Canada Ltd) and two German citizens - Kurt Pfleiderer and Heinz Pluckthun.

"The RCMP has now concluded that the remaining allegations cannot be substantiated and that no charges will be laid, beyond the charge of fraud already before the courts."

Mulroney, through a spokesman, said it cost taxpayers more than $10 million to have the RCMP chase unsubstantiated and politically motivated charges, the Toronto Star reported Wednesday.

Mulroney had always maintained that he was the victim of a vendetta by Chretien's government.

"This is a total and absolute vindication,'' said Luc Lavoie, a spokesman for Mulroney, who was out of the country. "Even after Mr. Mulroney received a formal apology, (the RCMP) wanted to maintain this line about an investigation ongoing.

"But it was totally unsubstantiated, a complete fabrication and this is a shame for political justice.''

Tory MP Peter MacKay, the party's justice critic and leadership contender, said he didn't understand what took so long for the RCMP to close the case.

"It's a sad comment that it took the RCMP this long to come to the conclusion that there was insufficient evidence to proceed,'' said McKay. "I see it as a total, unqualified vindication of Mr. Mulroney and his complete innocence in this entire affair."