ONE of Scotland's most famous multicultural festivals, the Edinburgh Mela, is close to being cancelled in the wake a boardroom split and the launch of two probes connected to the event.
Jason Rust, a Conservative Edinburgh councillor who is scrutinising the festival, said while the Mela's future is "up in the air" he does not believe this year's event will go ahead.
Police Scotland are looking at claims made against an individual who is connected to the festival, which was being lined up for a 21st year this August.
READ MORE Questions over Mela 2016
The watchdog the Office of the Scottish Charity Regulator (OSCR) is also probing claims of "financial irregularities" made about the Mela by "third parties".
Edinburgh City Council's culture leader also claimed key funders Creative Scotland and Scottish Government Expo will not release more than £180,000 of backing this year, although it is understood talks are ongoing with the funders.
The council put its £74,000 contribution on hold just days after making the award when Mela chief executive Chris Purnell resigned, followed by other key staff members.
In answer to questions from Mr Rust, Edinburgh culture and sport convener Richard Lewis said: “Creative Scotland and Scottish Government Expo funding have not been awarded following these discussions and will not now be released in 2016."
READ MORE Questions over Mela 2016
He said backing involved a £150,735 Creative Scotland grant and £130,000 of Expo cash.
Mr Lewis went on: "The council has continued to work with Edinburgh Mela on governance issues and on concerns raised following the resignations of a number of board and core staff members.
"These resignations took place in March and April 2016 and led to concerns about the operational stability and viability of the organisation to continue, and to deliver a robust event in 2016."
He added: "Council officers have also been advised that the Office of the Scottish Charity Regulator had opened an inquiry into the charity the Edinburgh Mela Limited in
response to concerns received from third parties.
"OSCR are currently assessing these concerns in line with its inquiry policy."
It was earlier reported organisers were continuing to seek sponsorship in the hope this year's even could still take place.
However, Mr Rust said: "I don't think it will go ahead this year.
“It seems to be all up in the air."
READ MORE Questions over Mela 2016
Mr Rust said some of the details of what went wrong are beginning to emerge but it was claimed the full picture of what happened is yet to be made clear.
He said: "We’ve still not been given answers about what happened (from the board).”
He also called for greater scrutiny of arts grants.
Asked if the council is supportive of the August event going ahead Mr Lewis said: "Officers have assured the Edinburgh Mela representatives throughout this difficult situation that the council is supportive of the event but require the necessary assurances around organisational viability and stability to be in place.”
Former chief executive Mr Purnell left the Mela, which has a board membership made up of individuals nominated by community groups and charities, in March citing a “breakdown of trust” between staff and board members.
Shami Khan, who chairman of the Mela board, and Foysol Choudhury, a founding director, did not respond to calls for comment.
A spokesman for Police Scotland said: “We have been made aware of claims relating to financial irregularities involving an individual."
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