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The bank's internal investigation said there was 'no corroborating evidence' of a fling between N and Mr Eleftheriou and recommended no further action, but said he must have been aware of the rumours concerning N and Z, he should have escalated his investigation to HR and that a clique was operating in his department.

Mr Eleftheriou, who joined the bank in 2010, had no previous disciplinary record.

But Z was only handed a final written warning for the Dirty Martini incident and behaving inappropriately with N on three other occasions.

Z's immediate boss S who was also at the cocktail bar was given a final written warning and demoted.

Of the other two, they said: 'In N's case apart from the incident at Dirty Martini and other occasions involving Z there were found proved allegations of engaging with C in obscene communications via instant messages and of breaching the confidentiality of Mr Colquhoun's investigation.'In C's case, the findings concerned the obscene communications with N.'Their cases were therefore somewhat different to the Claimaint's.'A remedy hearing to discuss compensation was set for earlier this month, but both parties settled out of court.

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He asked S to investigate further but was told later by him that Z and N had not been in a cubicle together.

Although Mr Eleftheriou investigated the Dirty Martini incident and spoke to those who were there, the bank axed him after an internal investigation found he 'did not take adequate action' over the rumours.

Z admitted being in the ladies with N but said they were just talking and denied any sexual activity with her at any time.

N admitted flirting with Z and that it was inappropriate when representing the Clydesdale Bank but said they had never had sexual relations. The CCTV was never found and the security guard who is said to have walked in on them had left the company and couldn't be traced.

He said he had a quiet word with Z who told him he was thrown out of the bar for being in the ladies, but nothing untoward had happened in there.

He described the incident as a 'storm in a teacup'.

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