Grand Jury Rejects Recorder Harassment Case : Investigation: Lee A. Branch says finding vindicates him. But the panel expresses concern about his management and urges outside audit.

The Orange County Grand Jury closed its investigation of county Recorder Lee A. Branch Friday, saying it could not corroborate allegations that Branch engaged in sexual harassment against employees, an official close to the investigation said.

The grand jury, however, expressed concern about allegations of office mismanagement and has recommended that an outside auditor review Branch’s operation, the official said.

A report of the grand jury’s findings has been forwarded to the Board of Supervisors, which earlier this year censured the recorder for misconduct based on the harassment allegations and office mismanagement.

Branch said Friday that he had learned of the grand jury’s decision through informal channels and said the panel’s finding “proves the point that these charges were all orchestrated and politically motivated.”

“I always had faith in them,” Branch said, referring to the grand jury members who this week ended their yearlong term. “This office is moving ahead.”

An official familiar with the grand jury’s findings said the panel was careful not to comment on the veracity of the sexual harassment claims, but found that there was insufficient corroboration to take the matter any further.

The grand jury has the option of filing criminal charges or initiating removal proceedings against an elected official.

County supervisors referred the Branch case to the grand jury in January after issuing the unprecedented censure, asking the watchdog agency to determine whether the misconduct allegations warranted his removal from office.

Before the grand jury probe, county officials in a separate investigation found that two female employees were harassed by Branch. Both alleged that the recorder made unwanted sexual overtures to them.

Branch has repeatedly denied the charges, claiming that the allegations and subsequent investigations were part of a plan by county officials to drive him from office.

The grand jury’s final report comes as the 57-year-old Branch is preparing to face County Clerk Gary Granville in the November runoff for the newly combined office of county clerk/recorder.