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(Adds details from FCC Inspector General's report, Pallone comment, requests for comment, background)
WASHINGTON, Aug 27 (Reuters) - The U.S. Federal Communications Commission's inspector general said there was no evidence of impropriety relating to the proposed, and now defunct, merger of Sinclair Broadcast Group and Tribune Media Co, concluding FCC Chairman Ajit Pai had not shown bias in favor of the deal.
According to its report released on Monday, the Office of Inspector General said there was "no evidence, nor even the suggestion, of impropriety, unscrupulous behavior, favoritism toward Sinclair, or lack of impartiality related to the proposed Sinclair-Tribune merger."
U.S. Representatives Elijah Cummings and Frank Pallone, Democrats, asked the FCC inspector general last November to probe whether Pai was biased in favor of Sinclair, which had sought approval of a $3.9 billion acquisition of Tribune. Sinclair announced on May 8, 2017, that it wanted to buy Tribune's 42 television stations in 33 U.S. markets and cable network WGN America.
Cummings and Pallone cited FCC decisions that benefited Sinclair, the largest U.S. television broadcast group, and a 2016 Politico news report that Donald Trump's presidential campaign had struck a deal with Sinclair for favorable media coverage.
Pai said in a statement on Monday that he was pleased with the finding, adding that the suggestion that he favored any one company was "absurd." He could not immediately be reached for comment beyond the statement.
Pallone said in a statement that the report provided the "first detailed responses to Congress’ questions. Beyond that, questions remain regarding the Chairman’s personal communications, which the IG noted were beyond his reach, and his conversations with Jared Kushner and (White House Counsel) Don McGahn."
The Sinclair deal was scuttled this month after the Republican-led FCC expressed opposition to the deal, questioning Sinclair's candor over the planned sale of some stations.
In December 2016 Politico reported, citing remarks by Jared Kushner, Trump's son-in-law and now a White House senior adviser, that Trump's campaign had struck a deal with Sinclair to try to secure better media coverage.
The Inspector General's report cited an email from Kushner to Pai on May 5, 2017, with the message, “Just tried you – had a quick thing to run by you” and indicated that phone records for that date showed a call from a blocked number at 10:03 a.m. The message was sent three days before the Sinclair deal was announced.
The Inspector General's report said that Pai had said he could not recall that conversation.