West Midland MEP Nikki Sinclaire announced she would be referring Coventry City Council to the EU's anti-fraud department during a speech at the European Parliament in Strasbourg.
She claims there are "discrepancies" in the way the council used Regional Development Fund cash, compared to what the European Commission believed it would be used for.
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The 37-year-old was helping authorities in the country track the criminals when his aircraft was fired upon in January.
Labour strongholds tended to remain so - apart from a major loss for the party in Dudley.
Labour suffered losses in English council elections, but the initial results were not as bad as many had expected.