POLICE chiefs have come under fire for initiating disciplinary action against a suspended finance officer who highlighted a North-East force's spending crisis.

Ken Walker, the ousted chairman of Cleveland Police Authority, used his final meeting in office to criticise the force.

In a statement issued before the meeting, he condemned the decision to suspend Cleveland finance officer Steven Preval as "deeply wrong and deeply disturbing".

Mr Preval was suspended in February this year following the discovery of a £7.3m shortfall in police spending plans.

He said Chief Constable Sean Price knew of the impending financial crisis in October last year, an allegation Mr Price denies.

Two months later, Mr Preval wrote to Mr Walker saying he was being targeted for blame.

Cleveland Police said the letter contained confidential information that he was not authorised to disclose.

The force said Mr Preval's disclosure amounted to gross misconduct.

However, Coun Walker said: "This issue raises both serious questions of civil liberties and about the fact the force apparently took the view there was information relating to the force's operation which the authority and its chairman should not be allowed to see.

"I have no doubt Mr Preval and his advisors will be considering what action to take over what is a very sinister development.

"Whatever the validity or otherwise of the representations made to me by Mr Preval, I believe he had the absolute right to approach the authority."

A Cleveland Police spokesman said: "The force has taken appropriate advice and acted on that advice. It would be wholly inappropriate to comment on an ongoing internal disciplinary matter."

Members elected magistrate Ted Cox as Mr Walker's replacement.

He was elected over fellow JP Alf Illingworth by 12 votes to four in a secret ballot.

Mr Cox said: "My key priorities are the reduction of burglary and anti-social behaviour, as well as dealing with drugs and kerb crawling.

"I also want to increase the number of police officers and support officers, but only when we can afford it and not before."

Redcar and Cleveland Borough councillor Dave McLuckie was elected vice-chairman over Stockton Borough councillor Chris Coombs.

His first proposal was to set up a 30-minute public forum during each authority meeting.

He said he wanted the public to be able to hold Chief Constable Sean Price and the authority to account for their actions with written questions followed by a supplementary question.