An independent team has been appointed to conduct an investigation into Cricklade College, after allegations of mismanagement and staff victimisation.
The Further Education Funding Council said this week the inquiry would examine "personnel-related allegations and financial issues relating to European Social Fund funding at the Hampshire college".
Sir Pat Lowry, the former chair of ACAS, the conciliation service, will lead the investigation, aided by adviser David Gilchrist, chair of governors at Calderdale College, near Halifax.
Cricklade principal Richard Evans was dismissed by governors in July. He was suspended in 1998 after police looked at alleged financial irregularities in computer training projects paid for by the Social Fund in 1994 and 1995.
The inquiry will also consider the sacking of Andrew Murray, a Natfhe negotiator. The union says he was made redundant because of his union activities.