Muslim street warden Iqbal Rasheed was awarded the huge payout for the four years of abuse he suffered whilst working for security firm, Chubb.

Reported by the Evening Standard, the father-of-three who patrolled the West End in search of anti-social behaviour was bullied by workmates who branded him a “madman who believes in God” and laughed at him when he fasted during Ramadan.

The terror campaign included taunts from colleagues, shortly after British hostage Ken Bigley was decapitated in Iraq with comments such as: “I hope they nuke you Iraqis now.”

In November 2004, Rasheed resigned because he could no longer cope with the abuse.

Rasheed who claimed his bosses turned a blind eye when he complained of the abuse said: “From the moment I stepped in the office I could feel the tension against me. I have lived in this country since I was a child but I was made to feel like a total outsider. I wanted to use my skills to help the people of London but my life was made very difficult … Racism is rife throughout the whole company.”

Former employer Chubb, who was contracted out by the New West End Company, a partnership of different organisations including Ken Livingstone’s Greater London Authority and Westminster City Council, said they regretted what had happened and have taken steps to address the problems.

“This includes providing staff with diversity training and one-to-one training on a new code of ethics with an emphasis on dignity and respect to all colleagues. We have implemented a new local management regime, and appointed a business practice officer with a dedicated helpline for our employees to call if they have any concerns about their working environment,” said a spokesperson.