The country's largest Islamic school was used as a "milking cow that never runs dry", paying millions­ of dollars through interest-free loans and exorbitant, above-market-value rents to its controlling body, the umbrella organisation representing Muslims in Australia.

The payments were canvassed in the Federal Court yesterday as the Sydney-based Malek Fahd Islamic School, which has more than 2400 students and 300 staff, launched a last-ditch bid to stay afloat.

The case threatens to engulf senior members of the Islamic community who were involved with the finances of both the school and AFIC.

Read the complete original version of this item...