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.
More top news
Mild and windy with some light rain at times.
Remaining mild and rather cloudy with patchy rain. Windy.
Billie Whitelaw, who starred in films including The Omen, has died aged 82.