Pickles may look into Tower Hamlets borough
31 March 2014 Last updated at 14:34 BST
Inspectors may be sent in to investigate the London borough of Tower Hamlets, according to Communities Secretary Eric Pickles.
Panorama has found that Lutfur Rahman, the Bangladeshi mayor of Tower Hamlets, has more than doubled funding recommended by officers for Bengali-run charities.
Opposition councillors, including Labour's Joshua Peck from Bow West, say they believe the grants were made in return for electoral support.
Mr Rahman categorically denies the accusation.