The Principal of Chesterfield College has been suspended over allegations that he mismanaged a pound;37 million project to improve facilities at the Derbyshire college.
Ian Murray was told to return home last month by the governing body and a special committee is to investigate the alleged failings.
A statement issued by the college said: "This follows concerns which have arisen in relation to the management of a major redevelopment project at the college. A special committee of the corporation has been asked, under the provisions of the college articles of government, to consider the issue further.
"For reasons of confidentiality, it would not be appropriate for any further comment to be made on behalf of the college."
Plans to improve the college buildings were unveiled at the end of November, just weeks before the principal's suspension. The redevelopment would mean building new engineering workshops and a sports centre as well as recladding buildings to improve their appearance, improving access for disabled people and selling off "unviable" buildings on the west of the site.
It was hoped that work would begin this year and take 12 months, but the outline planning application has not yet been approved by the local district council and a decision on funding from the Learning and Skills Council is also yet to be made.