AN employment tribunal has rejected a former Bury racial chief's claim that he was unfairly dismissed from his £26,000-a-year job.

And in a written judgment, the tribunal chairman contends that Mr Nasrullah Khan resigned from his job as director with Bury Racial Equality Council (BREC) over fears surrounding possible disciplinary proceedings or police investigation.

These were into allegations of dishonesty which were being made against him.

Mr Khan (47), of Benson Street, Bury, resigned as director in August 1999 on the grounds of ill-health.

But at a three-day tribunal hearing in Manchester last month, the former director claimed that events which led to his resignation were brought about by a "conspiracy" involving certain BREC officers and members.

Mr Khan said the "deliberate and fabricated" accusations of dishonesty or malpractice had been made to force him to quit.

However, in a six-page judgment, tribunal chairman Mr Michael Coles stated: "The tribunal was unanimously satisfied that no such conspiracy ever existed."

In his findings Mr Coles said that during 1999, using BREC funds, Mr Khan had purchased a black leather chair and a retractable knife set and that the director had taken the chair home.

Later, BREC chairman Dr Mohammed Salim questioned Mr Khan who told the hearing he had permission to have the chair at home as part of a three month trial. He also declared he had the option of returning it within that period or, if he wished to retain it, would have paid BREC for it.

But during the tribunal, Dr Salim denied he had any knowledge of the chair or the agreement suggested by Mr Khan.

The hearing was told the director was suspended on full pay pending a disciplinary panel investigation.

But the following day, he tendered his resignation by letter which referred to "an environment of mistrust and no confidence" which had affected his health.

Mr Khan had also enclosed a £69.99 cheque for the cost of the chair.

But after being pressed to reword his letter, Mr Khan did so and wrote: "I am sorry to state that due to misunderstanding on the issue of a leather chair, and due to ill health, I wish to resign as director."

Earlier this year, Mr Khan appeared at Bolton Crown Court and was cleared of theft and dishonesty charges.

In his summing-up, Mr Coles stated: "On the basis of the tribunal's findings, it was satisfied on the balance of probabilities that the applicant resigned because he did not wish to face disciplinary proceedings or the possibility of police investigation into the allegations of dishonesty which were being levied against him.

"This tribunal does not and has no need to make any findings about whether or not the applicant had, in fact, acted dishonestly."

He went on: "It is, however, satisfied that Dr Salim genuinely believed on reasonable grounds that there was sufficient evidence of possible dishonesty to merit at least a disciplinary investigation and that his actions were consistent with his responsibilities as chairman of the Council and were not motivated by any ulterior or improper reason.

"Accordingly, the applicant resigned his employment within the respondent of his own volition. As the applicant was not dismissed, his complaint of unfair dismissal is dismissed."

Mr Khan had worked for the racial equality organisation for 11 years prior to his resignation.

He had joined the then Bury Community Relations Council as a racial equality officer and when it was re-named in 1990 he was appointed acting director and then director six years ago.

Mr Khan is currently abroad and was unavailable to respond the tribunal's findings this week.

Commenting on the tribunal's decision, BREC honorary secretary Mr Sam Cohen said: "We never had any doubts as to the outcome of the tribunal.

"And we are pleased that after two years this is all over. The decision completely vindicates the action we took and now I hope Mr Khan gets on with the rest of his life."