Rafiq played for Yorkshire between 2008 and 2018 and captained the club in a Twenty20 matchAzeem Rafiq should be "praised" for his bravery and "should never have been put through" the Yorkshire County Cricket Club racism scandal, says the club's new chair Lord Patel.
Lord Patel said Yorkshire has settled the employment tribunal with Rafiq.
A report found former player Rafiq was a victim of "racial harassment and bullying" at Yorkshire but the club said it would not discipline anyone.
"Azeem is a whistleblower and should be praised as such," Patel said.
"He should never have been put through this.
"We're sorry for what you and your family have experienced and the way in which we've handled this.
"I thank Azeem for his bravery in speaking out. Let me be clear from the outset, racism or discrimination in any form is not banter."
The scandal has engulfed cricket over the past week and has led to the resignation of senior figures at Yorkshire, the club being suspended from hosting international matches and a host of sponsors ending their deals.
In September, a year after Rafiq went public with his allegations, Yorkshire released their of own summary findings of the report and subsequently said no-one would be disciplined.
But the investigation was criticised after it reportedly found a racist term about Rafiq's Pakistani heritage was regularly used towards him while at the club and concluded it was "friendly and good-natured banter".
Patel, a former England and Wales Cricket Board member who was appointed on Friday after the resignation of Roger Hutton, said the investigation was "flawed".
"What I've seen so far does feel uncomfortable," he said.
"It makes me feel the process wasn't as well completed as it should have been."
Speaking at a press conference following his appointment, Patel said he had taken four immediate steps in response to the scandal. These are:
Settling the employment tribunal with Rafiq, which does not include a non-disclosure agreement (NDA), as the club previously requested.Setting up an independent whistleblowing hotline for other victims of discrimination to come forward.Commissioning a review of processes and procedures on diversity and inclusion at Yorkshire.Sharing the full report into Rafiq's allegations with parties who have a "legal interest", including Rafiq's lawyers, the ECB and MPs.In a statement, Rafiq thanked Patel for ending the legal proceedings.
"It should not have taken the rest of the club a year to realise I would not be silenced through an NDA," he said.
"I spoke out because I wanted to create change at the club. I brought a legal claim because the club refused to acknowledge the problem and create change.
"For the first time I can remember, I have hope that this might happen - but I will be watching and continuing to campaign to ensure that it does."
More to follow.
