As reported by Australia's ABC.

http://www.abc.net.au/news/2012-07-31/islamic-school-ordred-to-repay-249m-funding/4166084

"Islamic School Ordered to Repay $9 Million Funding"

'An Islamic school in Sydney's south-west has been ordered to pay back $9 milliion in New South Wales public funds.

'Education Minister Adrian Piccoli wrote to the Malek Fahd Islamic School in Greenacre yesterday advising the funds must be repaid.

'Mr Piccoli says the order follows a Federal Government audit requested after concerns about the financial arrangements between the school and the Australian Federation of Islamic Councils.

'He says the school has been operating against not-for-profit guidelines since 2010, but it can keep its doors open.

"The school can operate provided it can prove it is operating not-for-profit", Mr Piccoli said.

I hope the Federal and the NSW State Governments have been and are deploying the best forensic accountants and auditors they can find; for Islam has fraud, deception and lying down to a fine art. - CM

"For any period that it operated for profit or is deemed to have operated for profit any funds given to it, any taxpayer funds, given to it will be recovered by the New South Wales Government.

'Federal Education Minister Peter Garrett says he also received a letter from Mr Piccoli yesterday, and that documents will be referred to the NSW Police Force and the Australian Securities and Investments Commission.

Hmmmm.  - CM

'Mr Garrett says the school has not breached federal guidelines, but there are concerns about some governance issues.

"I've asked them to write to me on those matters.  They have written to me, I'm now taking advice from the department", Mr Garrett said.

'The school's principal, Intaj Ali, has been unavailable for comment.

'The school, which opened in 1989, has about 2,000 boys and girls enrolled across its primary and high school classes'.

Fraud seems to follow Islamic schools around.  Here's another case, from Western Australia, in 2010.

http://www.abc.net.au/news/2010-11-30/islamic-school-founder-jailed-for-fraud/2356956

'Islamic School Founder Jailed For Fraud'.  "The founder of an Islamic school in Perth will have to serve more than 2 years behind bars for fraudulently obtaining thousands of dollars in government grants."

Only thousands...oh dear, he must have been a rank amateur compared to the folks running the Malek Fahd Islamic School in NSW.

Memo to the ATO [Australian Tax Office], State Treasuries, and Federal and State Education Departments: perhaps you should take extra special care when inspecting the financial and administration details of proposed or currently operating "Islamic Schools" in Australia. I fear that the little episode in Western Australia and the current scandal in NSW may not be the half of what might be going on. - CM