A NORTH-East Chief Constable could face disciplinary action after a damning report heavily criticised him for his part in the circulation of sexual rumours about a female police clerk.

An independent inquiry was launched after Hartlepool police station clerk Jayne Thwaites, 35, complained about the behaviour of Cleveland Chief Constable Barry Shaw.

Miss Thwaites alleged he started false rumours that she had an affair with Ray Mallon, who was at the centre of the Operation Lancet police corruption probe.

Miss Thwaites, who lives in Hartlepool, claims she was followed by MI5 agents and Mr Shaw started the whispering campaign about an improper relationship with Mr Mallon to discredit him.

She also said that after Mr Mallon was suspended from the force in 1997, she was subjected to a campaign of intimidation.

The inquiry, launched in October 2000, was commissioned by Cleveland Police Authority and headed by South Yorkshire Chief Constable Michael Hedges.

Miss Thwaites' solicitors, Watson Woodhouse, of Middlesbrough, said in a statement yesterday that the report concludes: "I specifically recommend that Mr Shaw should be held culpable for abuse of authority and breach of confidence."

The 16 members of the Police Authority, who have seen the 300-page report, will now consider whether disciplinary charges should be bought against Mr Shaw.

The inquiry required a 90 per cent burden of proof - compared to 51 per cent in a civil court and 68 in criminal cases - leaving Miss Thwaites' supporters confident a disciplinary hearing could lead to serious censure for Mr Shaw.

James Watson, a senior partner at Watson Woodhouse, said: "It is our firm belief that if the public are to have any confidence in Cleveland Police and its watchdog, the Cleveland Police Authority, then Mr Hedges' unequivocal findings must be accepted and a disciplinary hearing held into the actions of Barry Shaw."

The authority, which meets on Friday, has the power to decide whether or not to proceed with a formal hearing against the chief constable.

MP for Middlesbrough South Ashok Kumar led the call for full disciplinary proceedings.

He said: "The Police Authority should stand up for the conclusion of this report. For once it could act in the spirit of an investigation.

"This is an opportunity for it to show its independence and the courage of its convictions.

"This report should also be published so we can all see the investigation for ourselves."

The chairman of Cleveland Police Authority, Councillor Ken Walker, said: "The authority will be considering the investigating officer's report into the second part of Operation Diamond investigation, together with the comments of the Police Complaints Authority, which supervised it."

A spokesman for Cleveland Police said: "This is a matter for the police authority. Members will be given full details at the meeting."

In February, Mr Mallon was "required to resign" as a detective superintendent with Cleveland Police after admitting 14 disciplinary charges.

In May, he was elected mayor of Middlesbrough, despite Mr Shaw's claims that he ran an "empire of evil".