James Stewart was arrested in December last year on suspicion of misconduct in public office and was taken into custody at Thorpe Wood police station, in Peterborough. Police also arrested a 61-year-old man, from Peterborough, suspected of misconduct in a public office. Both men answered bail on Monday and were subsequently re-bailed by police until February 16, next year. The arrest occurred following the publication of a review by the Education Funding Agency of the financial management and governance at the school during Mr Stewarts time as principal. Mr Stewart, from Bedford, left the college in June last year, after almost 30 years, shortly after the school was placed in special measures by Ofsted. At the time, the achievement of pupils and the quality of teaching were said to require improvement and the behaviour and safety of pupils, was deemed to be inadequate.