Disgraced University of Adelaide vice-chancellor Peter Rathjen paid out as staff face cuts

Angry staff at University of Adelaide demand to know why Peter Rathjen received secret payout of $1m.

Former University of Adelaide vice-chancellor Peter Rathjen. Picture: Monique Louise Ferguson

Angry staff at the University of Adelaide are demanding to know why disgraced former vice-chancellor Peter Rathjen received a ­secret payout reported to exceed $1m at the same time every other UA employee was forced to ­accept an across-the-board pay cut due to the coronavirus.

A second female staff member who was embroiled in Professor Rathjen’s sleazy conduct is in line for an undisclosed payout as she prepares to leave the university.

UA is refusing to reveal any ­details of Professor Rathjen’s taxpayer-funded payout but sources within the university believe it may have been as high as 75 per cent of his two-year salary package, making it $1.5m.

Staff and former governing council members are questioning why the university’s governing council decided to pay out ­Professor Rathjen ahead of the ­release of the ICAC report on his behaviour, which in any other workplace would have been grounds for instant dismissal without pay.

The report found him guilty of “serious misconduct” over sexually harassing two employees, starting an inappropriate affair with another, covering up his past misconduct at Melbourne University, and lying about all of it to UA’s ex-chancellor and former SA governor Kevin Scarce, and ICAC Commissioner Bruce Lander QC.

Staff at the embattled university voted two weeks ago to accept a 3.5 per cent pay cut, the deferment of a 1.5 per cent pay rise and the loss of leave conditions until next July to save 200 jobs slated for the axe as UA reels from a $250m loss over the next two years due to the collapse in overseas student numbers.

The Australian has spoken to several staff members at the university who are fed up with its management and are calling for change.

Their calls have been supported by a former member of UA’s governing council, Keating government minister Chris Schacht, who said this week’s ICAC report left many unanswered questions.

“As a result of this report there are three key questions the university needs to answer,” Mr Schacht said. “It must reveal the full details of the due diligence prior to the appointment of Peter Rathjen and whether it investigated all reports both formal and informal of his past misconduct at the University of Adelaide and Melbourne University.

“Governing council must also explain why they decided to pay out Professor Rathjen ahead of the release of such a damning ­report.

“They must also reveal the size of the payout at a time when 200 staff are facing the sack lest they vote to accept a pay cut. The university owes an explanation to all its stakeholders.”

University chancellor Catherine Branson insisted on Wednesday after the ICAC report’s release that UA had no prior knowledge of Professor Rathjen’s misconduct ahead of his appointment as VC in January 2018.

“We had an experienced executive search team supporting us when we recruited (Rathjen),” Ms Branson said.

“They were asked and did undertake due diligence. We had references from very senior and prominent people in Australia.”

UA is still refusing to reveal its payout to Professor Rathjen, with Ms Branson saying only that it was a “diminished” amount of the $1m a year he was set to receive for the next two years of his contract.