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Independent Commissioner Against Corruption investigating Adelaide University vice-chancellor Peter Rathjen

ICAC is investigating allegations of improper conduct by University of Adelaide Vice-Chancellor Peter Rathjen. Following intense speculation about the professor’s sudden departure on leave, Commissioner Bruce Lander released an extraordinary statement.

University of Adelaide Vice-Chancellor Peter Rathjen. Picture: Naomi Jellicoe
University of Adelaide Vice-Chancellor Peter Rathjen. Picture: Naomi Jellicoe

The Independent Commissioner Against Corruption is investigating allegations of misconduct by University of Adelaide Vice-Chancellor Peter Rathjen, whose sudden departure on indefinite leave this week sparked intense speculation.

In an extraordinary move given ICAC’s normal secrecy restrictions, Commissioner Bruce Lander revealed the investigation on Thursday afternoon.

“I have commenced an investigation in respect of allegations of improper conduct by the Vice-Chancellor of The University of Adelaide,” Mr Lander said.

“I am also investigating the manner in which the university dealt with those allegations.”

The announcement follows Professor Rathjen suddenly taking indefinite leave and Rear Admiral Kevin Scarce immediately resigning as Chancellor this week.

“Ordinarily I would not confirm or deny the existence of an investigation because the legislation under which I operate is predicated upon investigations being conducted in private,” Mr Lander said.

“Similarly any persons aware of an investigation being undertaken by my office are constrained as to the information they are able to disclose.

“However, in light of the intense speculation regarding the University of Adelaide, and the likelihood that that speculation will continue and potentially lead to an unnecessary negative impact on the university’s operations, I have decided to make this public statement.”

Mr Lander stressed two points: Firstly that his investigation had just begun and should not be construed as showing there had been any impropriety; secondly, that the investigation was into possible misconduct or maladministration but not corruption.

As required by law, the investigation will be held in secret.

The university’s Acting Chancellor Catherine Branson drew staff and student attention to the ICAC statement.

“While it is natural for us to want to know more about what is happening, we need to remember that this is a matter for the ICAC,” she said.

“As you will know, the law places restraints on what can be said about an ICAC investigation. This is why the university is not able to comment further.”

Independent Commissioner Against Corruption Bruce Lander QC.
Independent Commissioner Against Corruption Bruce Lander QC.

Uni breaks silence amid speculation

The ICAC revelation followed statements by the university that the departures of the two leaders was not over financial issues and did not involve allegations of financial impropriety.

In a message to staff, Acting Vice-Chancellor Mike Brooks reassuring them of the university’s financial stability despite the projected $100 million shortfall due to the coronavirus pandemic.

While severe, the bleak financial outlook was “in no way related” to the sudden, indefinite leave taken by Vice-Chancellor Rathjen nor the immediate resignation from his position of Chancellor Kevin Scarce, he said.

Student representatives at Adelaide University are confident the institution will navigate through a projected $100 million shortfall and the disruption of losing its two top leaders.

SRC president Oscar Ong said Acting Vice-Chancellor Mike Brooks had a depth of experience to get through “these tough times”.

“I have no doubt he will do a really good job,” Mr Ong said.

“He has reaffirmed support for the strategic plan which includes skilling up research.”

COVID-19 student support at Adelaide University

Mr Ong has written to students saying while the leadership issue was “less than ideal” the SRC would work collaboratively to ensure the focus remained on safety during the coronavirus pandemic and continuation of academic studies.

Mr Ong said he expects a gradual, phased return back to face-to-face teaching and that most students now were concentrating on online exams at the end of the semester.

In a message to staff, Professor Brooks acknowledged they would be feeling uncertain but said he and Acting Chancellor Catherine Branson “are fully committed to steering our institution through the coming period”.

“We have the full support of council to do this and together we remain very confident about the future of our university,” he said.

Acting Vice-Chancellor Mike Brooks. Picture: Roy VanDerVegt
Acting Vice-Chancellor Mike Brooks. Picture: Roy VanDerVegt
University chancellor Kevin Scarce resigned unexpectedly this week.
University chancellor Kevin Scarce resigned unexpectedly this week.

The most recent financial report from Adelaide shows it earned $224.5 million in 2018 from international students, or 24 per cent of its operating revenue.

Roughly a third of Adelaide’s 21,000 students are from overseas and research students at masters and PhD level are “predominantly” from overseas.

Urging staff to focus on their work during “these difficult times”, Professor Brooks said the university was “on a sound financial footing and is expecting a strong recovery after the pandemic”.

Measures to compensate for about $90 million in lost expected revenue because of fewer overseas students and further costs due to coronavirus include a freeze on staff recruitment, reduced budgets for faculties and increased efforts to attract research funding and revenue from online short courses. The university also has capacity to borrow money.

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Professor Brooks said the council backed the university’s strategic plan but it might be implemented at a slower pace with changed priorities.

Speculation on the departures has revived talk of a merger with UniSA which was scuppered in 2018.

However, UniSA Vice-Chancellor David Lloyd said “right now the most important and only focus for UniSA, and for all three universities” was responding to the coronavirus

The federal Education Department said its role was to maintain standards.

“Universities are autonomous institutions, overseen by independent boards, responsible for their management,” a spokesman said.

The university is not an agency of the Crown but is established under an Act of state parliament.

This gives it “full juristic capacity and unfettered discretion, subject to the laws of this State, to conduct its affairs in the manner it thinks fit”.

Original URL: https://www.adelaidenow.com.au/education/tertiary/adelaide-university-faces-100m-shortfall-but-stays-quiet-on-rathjen-scarce-exits/news-story/e531c9b64ec41ad3968a1be57d1a5b07