A policeman that know he's being watched can be saved from his own bad behavior. It's called the Hawthorne effect, and it improved behavior 75 years ago. It's a scientifically demonstrated, although disputed, effect on human behavior.
http://www.ctvnews.ca/polopoly_fs/1.2316555.1428463384!/httpImage/image.jpg_gen/derivatives/landscape_300/image.jpg
Here is the reality, the policeman will know he is not being observed all the time, but if there is an incident that warrants review the imagery from a camera will be reviewed. If the imagery conflicts with the story he explains to his superiors he knows he will be caught. Knowing that any inconsistency may be found out, what is the reason one would have to make up a story about an incident? If one knows they cannot lie their way out of a situation, then they know that they will be found out.
If they can't get away with the crime, then the cost-benefit analysis of any grey area situation is slanted to not acting badly.
If you want to read what the Hawthorne effect has done in other areas of crime prevention:
http://www.popcenter.org/library/CrimePrevention/Volume_13/Anticipatory_Benefits_in_Crime_Prevention.pdf
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