Australia – Muslim school sacks its second principal amid allegations of financial mismanagement against the school board

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The school rents its property from the Australian Federation of Islamic Councils, and shares many of the same directors as the country's peak Muslim body.

Millions of dollars from the school, which is 75 per cent government-funded, were being paid to AFIC in "management fees" and backdated rent, with a subsequent federal government audit revealing no value for money for the school in the payments.

AUSTRALIA'S largest Muslim school has had its second principal removed in under six months amid allegations of financial mismanagement against the school board.

The principal of Malek Fahd Islamic School, Refaat El-Hajje, was stood down from his role on Sunday after a security guard went to his house and informed him that he would no longer be needed in the position.

The dismissal followed a demand by Mr El-Hajje to see the finances for the school of more than 2000 students at Greenacre in southwest Sydney.

The school rents its property from the Australian Federation of Islamic Councils, and shares many of the same directors as the country's peak Muslim body.

Mr El-Hajje has written a letter to NSW Education Minister Adrian Piccoli demanding more action be taken by the government and police over alleged financial mismanagement at the school in the wake of a long-running scandal that has caused the NSW government to freeze funds to the school and forced a federal government audit.

"As the administrator of the school for the last six months I have seen continuous AFIC interference and unethical behaviour by both the AFIC board members and the school board members. The school has acted for profit with money trail moving from MFIS to AFIC," Mr El-Hajje writes in a letter obtained by The Australian.

It is understood he has also outlined the allegations to the Independent Schools Association, the Board of Studies and the NSW Police.

Following reports in The Australian last year exposing the nature of the finances at the school, Mr Piccoli demanded the school pay back $9 million in state funds after he ruled the school was operating for a profit to benefit its manager, the Australian Federation of Islamic Councils.

Millions of dollars from the school, which is 75 per cent government-funded, were being paid to AFIC in "management fees" and backdated rent, with a subsequent federal government audit revealing no value for money for the school in the payments.

The school's chairman and then president of the Australian Federation of Islamic Councils, Ikebal Patel, was removed from his roles following the finding.

However, this was not before Intaj Ali, Malek Fahd's former and respected principal of 23 years, was removed last year after a dispute with the school's board.

Representatives of the school and federation did not respond to requests for comment.