Senior staff at Adam Smith College were paid up to £80,000 while suspended or on gardening leave.
The cash was paid between February 2012 and May 2013 when the Kirkcaldy college was at the centre of allegations of a culture of bullying and under subsequent investigation into how it was run.
A number of staff were suspended while an inquiry was conducted, including former principal Dr Craig Thomson, who later retired, and the then interim principal Iain Harrington.
The extent of the sum paid was revealed in a response to a Freedom of Information request.
The college confirmed it paid between £75,000 and £80,000 in salaries to staff on special paid leave but refused to reveal names.
Between January last year and last month, five managers or senior executives were suspended at any one time, with three still on leave on May 20.
The length of absences on full pay ranged from 124 days to 321 days.
The inquiry by auditors KPMG found several irregularities, including evidence that claims to grant-funding bodies were inaccurate, unsupported and overstated.
Kirkcaldy MSP David Torrance said: “People are being paid large sums of money to be on gardening leave. This is taxpayers’ money. I am confident the new board will resolve this speedily.”
News of the salary payments broke as it emerged that the college had been ordered to pay back £5.5 million of Euro funding.
The Courier told how an Audit Scotland report revealed that the Scottish Government had told the college to give the money back.
According to the 2011-2012 report, the college faced an “acute financial position” as a result of the having to return the cash.
However, it said the college had sufficient funds to support itself until its merger with Carnegie College in August.
The college confirmed it was repaying the £5.5 million.
In response to Thursday’s story in The Courier, a spokesman said there would be no impact on education. He said issues in the Audit Scotland report had been dealt with by the board and that firm action had been taken to address past failings and ensure students continued to enjoy a high standard of learning.
The college declined to comment further on the salary payments.