Political parties and Non government organisations in Fiji have welcomed the President's decision not to appoint a government ordered commission of inquiry into the actions of the military commander.
There had been allegations that Commodore Bainimarama planned to overthrow the Qarase government, if it didn't renew his term as commander.
The opposition leader, Mick Beddoes, says it was unfortunate the government rushed into establishing a commission of inquiry without checking whether there was any basis for the allegations.
Mr Beddoes says an independent commission of inquiry into the May 2000 coup would have been better appreciated.
The leader of the Fiji Democratic Party, Filipe Bole, says President Iloilo's decision was wise because "the country could have again been plunged into a period of uncertainty and instability."
Commodore Bainimarama says the military is happy with the decision and will continue to serve the nation with fairness and respect for the rule of law.