In a three-page-resolution, Chief Inquest Prosecutor Oliver Yu found "insufficient evidence" against Alex Ylagan, 31, Hayashis alleged former lover and masseur.
Ylagan was pinned down by the police after witness Reynaldo Ortillano identified him as the man he saw knocking on Hayashis front door on the early evening of July 22.
But Yu noted "several serious flaws" in the evidence presented by the police.
Yu pointed out that Ortillano failed to subscribe, or sign, his two sworn statements. According to Yu, the witness subscribed his sworn statements only after the announcement of monetary reward for anyone who could give information that would help in the immediate resolution of the case.
Yu said the action of Ortillano "remained unexplained and a mystery." Moreover, Ortillano made "additional material statements implicating the respondents," Yu noted.
In his July 23 statement, Ortillano said he saw a man standing in front of Hayashis house located at Block 5, Lot 2, LD Village, Tala, Caloocan, and heard him calling out the harpists name. Nikko Dizon