SEAN Price used his “inappropriate and allegedly corrupt” relationship with the chair of Cleveland Police Authority to become one of the highest paid policemen in the country, the Sacristy report found.

When the chief constable was appointed in February 2003, he received a salary of £104,922.

However, by 2008 this had risen to £176,471.

Only the Commissioner and Deputy Commissioner of the Metropolitan Police and the Chief Constable of Police Service of Northern Ireland were paid more – despite Cleveland being one of the country's smallest forces.

According to Operation Sacristy investigators, Price got the first boost to his salary in September 2005 when Dave McLuckie, chairman of Cleveland Police Authority (CPA), wrote to other members of the authority to advise that the chief constable had applied to take on the same role at Lancashire Police.

McLuckie proposed that Price be given a one-off ex-gratia payment of £13,000 plus an increase in the value of the car he could purchase from £32,000 to £40,000.

The chief constable accepted the offer and withdrew his application.

However, the following year Price was offered an annual payment of £20,000 towards a car, on top of the £40,000 allowance already received.

He was also given an annual fuel allowance of £3,000, together with a health care package for him and his family of around £2,000 per year and annual and pre-school/school fees at £5,000.

The offer, which Price accepted in November 2006, was given on the understanding he would remain in post for at least another two years.

Eighteen months later, the CPA leadership panel drew up a deal replacing the previous additional payments which meant that in return for staying a further three years - later extended to five - the chief constable would receive an extra £50,000 per year.

Then in March 2009, Price was given an extra bonus payment of £24,000 with his deputy Derek Bonnard receiving £15,000.

In February the following year, the pair received f £20,000 and £13,000 respectively.

What they said:

In a statement Price told investigators that his remuneration was governed by a central pay band and he did not apply for a performance related bonus scheme.

He added: “When I was appointed chief constable, Cleveland Police were ranked nationally at 43 in the league. After being in post for five years it was first in the league table.

“The police authority was concerned that I might be head hunted by another force that was likely to be larger and thus attract a higher pay band. I was aware that other chief constables heading larger forces were not only on a higher pay band but were also receiving retention packages.”

Price said there was also concern that at a time when there was a potential for the merger of forces, if he did leave there would be a risk that they would not be able to recruit a successor but would instead face merger with Northumberland and Durham.

“The offer of an honoraria payment in the form of a retention package was led by the Police Authority in an effort to overcome their concerns.

“It was the chair who came to see me to identify the agreed approach of the police authority to present a financial incentive for my remaining in post.”

The report concluded:

“It is the view of the investigating officer that there is evidence of gross misconduct by Price.

“He knowingly secured for himself unreasonable, unjustified and excessive remuneration and honorarium payments as a direct consequence of his inappropriate and ‘allegedly’ corrupt relationship with McLuckie.