The U.S. government is shutting down a planned study testing whether moderate drinking has health benefits over concerns that its funding by the alcohol industry would compromise its credibility.

The National Institutes of Health said Friday that the results of the planned $100 million study could not be trusted because of the secretive way that employees negotiated with beer and liquor companies to underwrite the effort.

Government officials say it is legal to use industry money to pay for government research as long as all rules are followed. However, in this case, NIH officials say employees did not follow proper procedures, including keeping their interactions with industry officials secret.

NIH Deputy Director Lawrence Tabak said the interactions between the employees and industry representatives appeared to "intentionally bias" the study so that it would have a better chance to conclude that moderate drinking is beneficial.

An NIH review panel was also concerned that the study's proposed span of 10 years was too short a time period to adequately test the potential problems of a daily drink, such as an increased risk of cancer or heart failure.

NIH Director Francis Collins temporarily suspended the study last month after reporting by The New York Times first raised questions about the funding policy violations. Collins said Friday that he was completely shutting down the research.

"This is a matter of the greatest seriousness,'' he said.

The study had planned to track two groups of people, one group drinking a glass of alcohol a day and another abstaining from alcohol. The study had planned to compare new cases of cardiovascular disease and the rate of new cases of diabetes among participants.

Some of the world's largest alcoholic beverage makers, including Anheuser-Busch InBev and Heineken, had contributed to the study, although Anheuser-Busch InBev had recently withdrawn its contribution.

The NIH said of the $67.7 million raised from private donations, nearly all from the alcohol industry, $11.8 million, had been spent for the study.

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The NIH's National Institute of Alcohol Abuse and Alcoholism (NIAAA) had planned to spend $20 million of its own money for the study. It said $4 million had been spent.(VOA)