The Australian has obtained a secret independent 116-page report into Djarragun College by Cairns solicitor Jim Brooks.
Jim Brooks concludes that Djarragun College operated on a "hierarchy of favouritism" of staff, employed unregistered teachers and sacked employees unfairly.
The report is based on 35 interviews with 24 current and former Djarragun staff, including three interviews with principal Jean Illingworth, who has denied any wrongdoing.
Ms Illingworth argued the report was "fundamentally flawed, is biased and failed to ensure a process of natural justice".
Ms Illingworth said the complaints had arisen from "disgruntled former staff whose employment was terminated because of poor performance" and a campaign by former chief operating officer Louise Redmond to discredit her.
But Jim Brooks said many of the concerns raised by Louise Redmond were legitimate and not all complaints arose from "malcontents".
Djarragun "rife with nepotism', says review, Sarah Elks, The Australian, 22 August 2011