Former Director of Public Prosecutions Khamisi Tokunbo has dropped his lawsuit against the Government.

Mr. Tokunbo had initiated legal action challenging the constitutionality of a decision by Governor Sir John Vereker not to automatically renew his three year contract when it ended last month.

Mr. Tokunbo was Bermuda's first DPP after the Progressive Labour Party decided to have a politically appointed Attorney General.

Deputy Governor Tim Gurney yesterday confirmed reports that the suit has been dropped.

"We're pleased that the suit is not continuing and wish Mr. Tokunbo well in the future," Mr. Gurney said.

The Governor has appointed Sri Lankan lawyer Kulendra Ratneser acting DPP until a permanent replacement can be found.

Mr. Tokunbo's attempt to prevent Mr. Ratneser taking up the post failed last month when a judge turned down his request for an injunction.

It is unclear why Mr. Tokunbo dropped his suit.

One lawyer speculated that he may have received a "golden handshake" or had been advised that legal action would be a long, expensive uphill climb. Asked if he would be offered another post, Mr. Gurney said: "No comment."

Neither Mr. Tokunbo nor his lawyer Saul Froomkin could be reached for comment last night.

The decision to re-advertise the job and Mr. Tokunbo's subsequent lawsuit sparked controversy, with lawyer Larry Scott defending Mr. Tokunbo and calling for a boycott of cases codnucted by Mr. Ratneser.

But Bermuda Bar Council president and Opposition MP Trevor Moniz said many attorneys believed Bermuda needed a change of leadership in the DPP's office and that Governor Sir John Vereker was right not to automatically renew his contract.

Later Government Senate Leader David Burch warned that the controversy was damaging morale in the DPP's office and criticised claims by Mr. Moniz that "grace and favour"had been behind the appointment of Mr. Tokunbo in the first place.