South Carolina governor cleared in state House ethics case CHARLESTON, South Carolina (Reuters) - South Carolina lawmakers on Friday cleared Republican Governor Nikki Haley of ethics charges that accused her of illegally lobbying on behalf of her employers while a member of the legislature. The Republican-led House of Representatives' Ethics Committee voted to dismiss the charges during a private meeting. The decision came after the panel conducted a public hearing on Thursday in response to allegations stemming from Haley's prior work as a business development consultant for an engineering firm and a fundraiser for a hospital foundation. In a statement on Friday, Haley praised the panel and referred to the charges as "attempts at political distraction." "The Ethics Committee did its job thoroughly, professionally, and well," Haley said. It's just a shame that our judicial and legislative bodies have had to waste so much of their time on phony political charges that never had any evidence behind them or any basis in fact. Haley did the work in question while serving as a House member from 2005 to 2010, ahead of being elected as the state's first female governor two years ago on a wave of Tea Party support. But in late May, the panel reopened its inquiry. He said she supported approval for a new heart surgery facility at the Lexington Medical Center, which paid her $110,000 a year, because the hospital was in her district. The governor was not subpoenaed to testify at the hearing on Thursday but made a late appearance before the panel to say she had done nothing wrong. "There's a difference between a lobbyist and business development person," testified Robert Ferrell, vice president of CDM Smith, formerly known as Wilbur Smith Associates, the engineering firm that hired Haley. If the panel had determined Haley committed an ethics violation, she could have faced a reprimand or small fine, or the case could have been referred to the state attorney general for a criminal investigation. Editing by Colleen Jenkins and Jackie Frank