THE Serious Fraud Office and South Yorkshire police this week launched an investigation into the liquidation of Progress Training - a subsidiary of Barnsley College.
Government-appointed auditors were previously looking at the relationship between the college and the company, which was established to provide franchised courses.
The company collapsed last year with debts of pound;350,000. Other companies set up by the college were also scrutinised. They are understood not to be part of the SFO investigation.
In March Barnsley College dismissed David Eade, its chief executive, on grounds of "incapacity to undertake the duties of the post". He had been on sick leave for a year. Helen Gilchrist, Bury College principal, was appointed acting chief executive.