Government freezes $4.5m in taxpayer funding to Islamic college

The South Australian government has put a freeze on the $4.5 million in taxpayer funding given to Adelaide's Islamic College over concerns it's not complying with funding requirements.

There are fears the West Croydon college could now close within weeks, leaving 600 students without a school by the end of this term.

"We love Australia, I call it my home, but when we go outside we found it's different and we need for our children to be safe in this country," parent Sundas Ibrahim said.

"That's why we are here."

Fresh in-fighting has sparked the resignation of acting principal Doctor Lynda Macleod, along with chairman Mohammed Abdulla and another board member.

There's concerns the college, run by Muslims Australia, is not spending the $4.5 taxpayer dollars on education.

"We won't leave kids stranded, we will work with the school but I can't give a long-term guarantee while this school continues to not comply," Education Minister Susan Close said.

Should the State Government pull its funding, it's likely the Federal funding will also be withdrawn which would force the school to close.