Claims £1m in taxpayers’ cash was used to set up a faith school in Pakistan are being investigated by a local authority.
The Al-Hijrah Trust, which runs the Al-Hijrah Islamic school in Birmingham, allegedly used the cash to fund a “sister school”.
Birmingham City Council said it was working with relevant statutory agencies to investigate the claims.
The trust has not yet responded to BBC requests for comment.
A Birmingham City Council statement said: “We have gathered enough information to warrant further investigation into the use of public funds and we continue to work with the relevant statutory agencies.
“If we find anything criminal it will be referred to the police.”
Special measures
Al-Hijrah School, based in Burbidge Rd, Bordesley Green, was taken over by an Interim Executive Board in May after being placed in special measures by Ofsted.
The city council highlighted financial pressures, including a £899,000 deficit, when the school’s new board banned former governors from the site.
The Department for Education said it was aware of the allegations over the use of public money and was liaising closely with the city council to monitor the situation.
“The school is currently in special measures and we have approved the council’s choice of interim executive board,” it said.
The allegations are not connected to the so-called “Trojan Horse” investigation launched in Birmingham in March.