QUEENS Park Hospital in Blackburn has been rocked by allegations of racism and conspiracy theories involving top health bosses, a report has revealed.

Despite finding trust managers had not acted in a racist manner, the investigation into claims of institutionalised racism concluded they had 'a great deal to learn' about the sensitive treatment of ethnic issues.

Investigators also said they had reservations about the integrity of members of Blackburn with Darwen Racial Equality Council, which made the allegations.

They have now recommended all staff at Blackburn, Hyndburn and Ribble Valley Healthcare Trust are trained on race issues.

The inquiry came after the REC complained that two Asian consultants, Mr Noor Ahmed Ebbiary and Mr Salim Najia, were being treated less favourably than white counterparts in the obstetrics and gynaecology department.

The report, which was due to be considered today by the Cumbria and Lancashire Strategic Health Authority, said the trust chairman Ian Woolley and chief executive John Thomas believed themselves and the Trust to be free of racist attitudes, not least because they won an industrial tribunal brought by Mr Ahmed in March.

It said they also were convinced the complainants were being used as part of a conspiracy by leaders in the ethnic minority community to force their resignation before the merger with Burnley Health Trust next April -- so the conspirators could take over their roles.

The report said conspiracy allegations were unsubstantiated. But the investigators had doubts about 'the integrity of some of the key players' -- not least conflicts of interests concerning members of the REC .

The report examined events over five and a half years at the department

It found hospital bosses were not racist and generally very good managers but had sometimes handled situations involving ethnic minority staff poorly.

The report said: "We do believe that in relation to events in the O and G department, they have been very insensitive to the feelings of those who are members of ethnic minorities and who, with good reason, look for racist motives when they suffer detriment.

"It is not good enough to say: 'I am not a racist so I can have done no harm.'

"The leaders of the Trust are responsible for its management.

"The onus is on them to get to the bottom of problems, to smooth troubled waters.

"Instead they appear to have often been defensive, and sometimes complacent and petty."

The inquiry was led by paediatrician and former Commission for Racial Equality (CRE) member Lord Chan and Christine Jackson.

They concluded that the merger should be an opportunity to turn over a new leaf and bring in a 'widespread programme of training on ethnic and cultural diversity and the sensitive and fair management of staff.' The report revealed in 2001 management consultants were brought in by Mr Thomas to sort out the 'dysfunctional' O and G department. Despite three days spent away from the hospital, the consultants' efforts proved fruitless because 'trust and confidence within the department had completely broken down.'

The problems stemmed from 1997 when O and G staff complained about the practices of Mr Ahmed.

He was suspended and reinstated after retraining but he took the Trust to an industrial tribunal which rejected his claims of racial discrimination and victimisation.

Mr Najia made an application to an industrial tribunal in June 2001 but withdrew it in May 2002.

Mr Najia took over as REC chairman in July this year and the report said it was "difficult to imagine how the health authority can expect an impartial response to the report of this review from the REC when its chair is one of the chief perpetrators of the complaints."

The report also asked for the Department of Health's Race Equality Unit to monitor developments at the trust.