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"He has become the issue. There comes a point when fairness has nothing to do with it and what matters is the integrity of the organisation," a well-placed source was quoted as saying by The Times newspaper on Thursday.
According to British daily, detailed plans are being prepared to oust Sir Blair from his position as head of Scotland Yard in an attempt to halt the collapse of morale in the city police force.
"The grey suits are gathering. Ian has already been asked to consider whether his staying in the job is damaging the Met. The infighting at the top of the Yard is sapping the morale of the men and women doing the job on the street, a senior source told the paper.
The report said ministers, senior officials and leading police chiefs have "secretly" discussed arrangements for replacing the embattled commissioner by the end of this year.
Assistant Commissioner Tarique Ghaffur, who is Britain's top Muslim officer, has charged the Metropolitan Police chief of racial discrimination, and started employment tribunal proceedings. Sir Ian is also at the centre of an inquiry into allegations that he influenced the award of police contracts to a close friend.
Ugandan-born Ghaffur, whose parents were from Pakistan, arrived in Britain in the early 1970s. Ghaffur, who has sought compensation of 1 million pound, claimed Sir Blair had discriminated against him "over a long period of time" and sidelined him from his job in charge of security for the 2012 Olympics.


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