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." [BBC] Read more