A POLICEMAN who planned to sue his bosses over a claim of racial discrimination has accepted an out-of- court payout.

Detective Constable Jayson Lobo, who used to work in Burnley, was suspended over allegations he fiddled mileage and overtime.

DC Lobo, who was subject to an internal disciplinary hearing despite being cleared of any criminal offences at a Crown Court last year, had lodged a complaint of racial discrimination with the Manchester Tribunal Office.

He had been due to face a two-week long tribunal next week. However, the former middle distance Common-wealth Games runner said Lancashire Police made an offer to settle the case out of court - despite the complaint being about a Merseyside officer - as it was his employer.

DC Lobo was suspended on full pay for three years during an investigation believed to have cost £500,000, which concluded he had mistakenly claimed just £90 in expenses.

The Lancashire Police Federation, which represents rank and file officers, called for the force to review its disciplinary procedures to prevent other officers going through a similar "traumatic" ordeal.

The detective, who lives in Blackburn and now works at the force intelligence unit at police headquarters, said he agreed to settle out of court because Lancashire Police had been so supportive.

DC Lobo, 37, said today: "I'm just glad the whole nightmare is over with and I can look forward to getting on with my job. I feel I can now hold my head up high with my integrity in tact.

"I am informed that to date this inquiry has cost the taxpayers of Lancashire approximately £500,000.

"I feel fully vindicated.

"Even though I wanted it to be brought to the public's attention about what had happened, an out-of-court settlement was agreed because the officers who I had the grievances against would have only been called as witnesses."

Ribble Valley MP Nigel Evans said: "This has been incredibly damaging for Lancashire police who have ended up having to pay out compensation on the back of a racism claim. Lessons have got to be learned from this."

Steve Edwards, chairman of the Lancashire Police Federation, called for a review in the way the constabulary dealt with such cases in the future.

A Lancashire Constabulary spokesperson said: "The constabulary and DC Lobo have now resolved the issues which led to DC Lobo pursuing recourse through the employment tribunal."

A spokesman for Merseyside Police said they were unable to provide a comment.