Uni chief faces misconduct probe

A personal relationship with another staff member is at the centre of an ICAC investigation at the University of ­Adelaide.

University of Adelaide vice-chancellor Peter Rathjen is on indefinite leave. Picture Naomi Jellicoe

A personal relationship with another staff member is at the centre of an ICAC investigation into the University of Adelaide that has had its vice-chancellor, Peter Rathjen, stood down pending an inquiry into “improper conduct”.

The state’s corruption investigator revealed on Thursday that a probe was under way after days of turmoil in the university following the shock announcement on Tuesday that Professor Rathjen was on indefinite leave.

His sidelining followed the sudden resignation of chancellor and former South Australian governor Kevin Scarce on Monday, triggering a wave of speculation about the crisis within the state’s most elite university.

In a statement, the usually secretive Independent Commissioner Against Corruption Bruce Lander said he was “also investigating the manner in which the university dealt with those allegations (against Professor Rathjen) … The university has committed to providing full co-operation with my investigation’’.

“I do not intend to comment further on the nature of the allegations,” Mr Lander said.

But he said the probe “is in respect of potential issues of serious or systemic misconduct and maladministration, not corruption”.

The university has been rocked by this week’s events, which began on Monday at a meeting of the council, the university’s highest governing body, chaired by Mr Scarce, a former navy rear admiral.

At the meeting, senior university staff who usually attend were ushered out so council members could discuss an undisclosed item in-camera. Following this, they were startled when Mr Scarce, without explanation, resigned his post with immediate effect.

On Tuesday morning, Professor Rathjen stood aside, leaving staff and students in the dark as to why the institution’s two top leaders had left their posts.

The Australian understands the ICAC investigation does not centre on the misuse of funds but the appropriateness of a relationship formed by Professor Rathjen, and whether that impinged on the execution of his duties.

While there is no suggestion Mr Scarce is under any investigative cloud over possible maladministration, his oversight of the vice-chancellor’s conduct may be an area ICAC examines as part of its inquiry.

South Australia has the most secretive ICAC laws in Australia and it is an offence for anyone to reveal that someone or something is under investigation unless the commissioner himself has issued a formal statement confirming it.

Because of the secrecy, even the SA government has been out of the loop about the reasons for the turmoil at the university.

The Australian understands that the university’s deputy chancellor, Catherine Branson QC, telephoned Premier Steven Marshall on Thursday as a courtesy to alert him to the fact that the university was co-operating fully with the ICAC investigation.

There is concern within the state government about the length of any investigation, with ICAC having taken up to two years to finalise previous inquiries.

One government source said acting vice-chancellor Mike Brooks — Professor Rathjen’s deputy — was “very well regarded’’ but, for the stability of the university and economic wellbeing of the state, it would be troubling if the university had an acting chief for an extended period while the vice-chancellor was under an investigative cloud.

“Mike is a very, very capable guy and did a great job as acting V-C prior to Rathjen’s appointment, but you wouldn’t want the university without a vice-chancellor for two years,’’ the source said. “That could do some damage to the economy.’’

Other government sources said there was some relief that the commissioner had taken the unconventional step of confirming his investigation, as it helped scotch speculation around SA that the departures of Mr Rathjen and Mr Scarce were because of internal warring over university finances, hit by the collapse in numbers of overseas students.

In one of his first moves as acting vice-chancellor, Professor Brooks released budget figures to staff on Wednesday revealing that the university expected a budget shortfall of $100m this year because of the COVID-19 pandemic and the loss of overseas students. He said $90m was directly due to lost student fees, and dealing with the virus would cost $10m.

Professor Brooks said the university was on a sound financial footing and he expected “a strong recovery after the pandemic has ended”.

In his statement on Thursday, Mr Lander also said his investigation “must not be construed as a finding that any person has engaged in impropriety”.

He would follow the legislative requirement to consider, at the end of the investigation, whether it was in the public interest to publish his findings.