A total of 16 service personnel are under investigation for fraud over allowances for children at a Penzance school.

A Royal Navy lieutenant commander, an Army lieutenant colonel and at least one other officer are among those under investigation.

The investigation surrounds the alleged misuse of the Continuity of Education Allowance, which is worth up to £5,833 each term for children who board.

It is alleged some claimants have cheated the taxpayer out of up to £20,000 through misuse of the allowance.

The benefit is intended to help military families to keep their children in the same school as their parents move around the world to different postings.

A senior officer linked to the inquiry "One expects public servants to behave fairly so to claim this allowance unfairly is wrong and taints us with the same brush as the MPs expenses scandal."

Anyone found guilty would be made to repay the money and could face a court martial, with the possibility of imprisonment and dishonourable discharge.

The inquiry began at the GEMS Bolitho school in Penzance, where 16 Service personnel are being investigated on suspicion that as much as £300,000 has been improperly claimed.

The school charges boarding fees of up to £6,860 a term.

Allowance claims relating to up to 50 children at the school are being examined.

An MoD spokesman said: "The MoD must investigate all allegations of misuse of public money."

There is no suggestion that the school is involved in any wrongdoing.