It was alleged in the Independent Broad-based Anti Corruption Commission that Mr Paul authorised $30,000 in wine purchases from his wine merchant son on behalf of allegedly corrupt public servants.

The allegations have rocked the school community.

But the president of the school board, Steve Barnett, said the board had "great confidence" in Mr Paul.

"The board and I recognise the hard work Peter has put into the school turning it from a basket case to one of the leading primary schools in the state and we have great confidence in him," he said.

Outside the school on Friday afternoon, Sammy Muthu, whose daughter is in Grade 3 at the school and whose son (now in Year 11) also attended Chandler Park, said he was shocked when he heard the news.

"I've only heard things over the news; they haven't told us anything."

Of Mr Paul, he said: "he seems to be all right, but you never know. As a parent, we don't really know what money is going in; it would be good if we knew what was going on."

Like many other state schools, Chandler Park has tried to boost its coffers through fundraising efforts.

In September, the school announced it had raised all of $531.80 to pay for improvements to its playground equipment. Students had diligently collected 5c pieces to raise the funds.

Earlier in the year students held a walkathon in the rain, raising $1930.70 to go towards a new reading program.

In May last year, Mr Paul wrote to parents expressing his dismay that the school had not received more funding in the state budget.

Mr Paul wrote that the school had failed to win funds to complete its building projects. He said: "Budget Day was a very disappointing day for the Chandler Park school community".

Mr Paul's suspension followed the Education Department's announcement this week that it had sacked Nino Napoli, a senior financial official responsible for overseeing $4 billion in funds, after IBAC identified him as the central figure in an alleged multi-million-dollar corruption scandal.