Former IT lecturer Peter Daly, 47, attempted to bring what was allegedly going on to the attention of his managers, but later received a threatening voicemail message warning him someone would “break his f***ing legs” if he didn’t keep quiet.

In a joint statement, Mr Hanson and Mr Daly said: “The managers of the College have overlooked that there are countless learners across Liverpool with qualifications they probably know nothing about.”

The college has refused to comment on specific allegations, and says the finding of a forensic audit into the college are subject to “legal privilege”.

Liverpool City Council leader Warren Bradley said he had requested to see the report, but has been refused. He has been told he can meet with college bosses, but only with solicitors present. Funding body, The Learning Skills Council, said it had been contacted by the college in September to say it had held an internal investigation into “allegations against the college”.

But, following the receipt of “serious allegations of financial irregularity” in March, it has decided to interview whistle-blower Mr Hanson this month.

A spokesman for the college said: “Concerns were raised in 2008 by a former employee. We commissioned an independent investigation as appropriate in such a case and have followed all of our policies and procedures.

"The concerns relate to a period several years ago. The findings of the investigation are covered by legal privilege and we are unable to comment on specific allegations.

"However, the college can confirm it has taken necessary steps and has liaised with appropriate bodies. We now consider the matter closed.”