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Bournville College of Further Education, Birmingham, has said it will continue with community teaching despite having called in the police to investigate fake franchised courses for 3,000 students.

Patricia Twyman, the principal, has severed links with four community groups and said voluntary redundancies may be necessary because of losses of up to Pounds 500,000. "We immediately froze all payments as soon as we had any reason to suspect anything was amiss," said Mrs Twyman.

Natfhe regional organiser Paul Mackney said: "The college got carried away with its franchising."