THE former principal of a Scottish college embroiled in a row over severance payments may have breached his duties as the trustee of a charity, a watchdog has warned.

Under the law those who run charities - including colleges - have to ensure financial assets are used to further the interests of the organisation.

However, the Office of the Scottish Charities Regulator (Oscr) said John Doyle, the former principal of Coatbridge College in Lanarkshire, may have breached those duties when he received an inflated severance package.

The intervention comes as the Scottish Parliament's public audit committee investigates the circumstances surrounding the awarding of a £304,000 severance package to Mr Doyle in 2013 when the college merged with several others to form New College Lanarkshire.

Mr Doyle, a member of his staff and five managers shared half of a £1.7 million severance pot between them in a case which Auditor General Caroline Gardner described as one of the most serious failures in governance she has ever encountered.

Written evidence to the committee from Oscr said information from the Auditor General that the payments were excessive and that information was potentially withheld from the college's remuneration committee were areas where they had a regulatory interest.

The submission states: "The fact that severance packages awarded to some members of staff exceeded those required under the agreed severance package raises the issue that charitable funds may have been misused.

"Charity assets should be utilised for the purposes of the charity, and while it is recognised that the fair and reasonable remuneration of employees is necessary, additional or inflated severance packages may be a breach of trustee duties."

Oscr said concern was compounded because the packages were specifically advised against by the Scottish Funding Council.

The submission adds: "The report raises serious concerns about the governance and conflict of interest procedures of the charity.

"There is a suggestion information was deliberately withheld from the remuneration committee and that the principal particularly did not act correctly when faced with a conflict of interest. This again may indicate a breach of trustee duties."

Although the college has been removed from the charity register following the merger, Oscr still has powers under 2005 charities legislation to apply to the Court of Session to retrospectively disqualify trustees. However, a decision on whether to act has not yet been made.

When he gave evidence to the committee Mr Doyle accused Ms Gardner of making "vexatious statements" about him in her report on the college and denied any wrongdoing.