The law allows investment of your funds (see below) but the EC is entitled to ask for proof of where it has been invested and how those investments are faring. At the very least the investments would have to be “arms length” and legal and if there is concern then the EC needs to get on top of that immediately.
It’s probably time for someone to ask some pertinent (or even impertinent) questions and, at the first sign of any dogy dealings, insist that the money be returned to the scheme’s bank account.
This is what the law says:
73 Can money in administrative fund or sinking fund be invested?
(1) An owners corporation may invest any money in its administrative fund or sinking fund in any manner permitted by law for the investment of trust funds or in any prescribed investment.
(2) Any interest received on an investment made under this section forms part of the fund to which the investment belongs.