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University of Adelaide in global hunt for new vice-chancellor as talk of merger rekindled

The cash-strapped University of Adelaide will mount a worldwide search for a new vice-chancellor, with Peter Rathjen set to vacate the position.

Outgoing University of Adelaide vice-chancellor Peter Rathjen.
Outgoing University of Adelaide vice-chancellor Peter Rathjen.

The cash-strapped University of Adelaide will mount a worldwide search for a new vice-chancellor, with Peter Rathjen set to vacate the position amid a continuing corruption inquiry into allegations of “improper conduct” during his time running the institution.

His departure comes as the Group of Eight university faces a huge financial shortfall from the collapse in overseas student numbers on account of the pandemic, with anticipated revenues of more than $1bn this year now replaced with expected losses of $100m.  There is growing concern within the university’s governing council and in the South Australian government that the Independent Commissioner Against Corruption inquiry into Professor Rathjen’s conduct could drag into next year.

While his departure would in no way prejudge the ongoing ICAC inquiry or suggest any wrongdoing on his part, the leadership arrangements at the university have become increasingly untenable at a time of unprecedented economic pressure.

As things stand, Professor Rathjen remains vice-chancellor but is on “special leave”, with deputy vice-chancellor Mike Brooks acting in the role at a time when Australia’s eight largest universities are bracing for a $2bn ­financial hit due to COVID-19.

The Weekend Australian understands the terms of Professor Rathjen’s resignation are being ­finalised and that his departure will be confirmed within weeks.

Sources have told The Weekend Australian that when Professor Rathjen departs, the university will mount a global search for a replacement, with Professor Brooks having indicated before Professor Rathjen’s 2018 appointment that he had no intention of seeking the top job.

Former university council member Chris Schacht, a minister in the Keating government, said the university had been through “a shocking period” and needed to make “even bigger decisions” about its future, including restarting merger talks with the University of South Australia, shelved in 2018.

“There is no doubt the university is under immense financial pressure and needs clear guidance and certainty from the very top,” Mr Schacht said.

“The biggest and most obvious opportunity is to restart the talks around a merger because the economic development of SA has to be built around a big, strong, competitive uni, and our three universities are too small to do it on their own.”

The University of Adelaide has endured a chaotic two months, starting with the sudden resignation of its chancellor, former state governor Kevin Scarce, on May 4, with Professor Rathjen taking indefinite leave the following day.

Amid wild speculation about the investigation, the ICAC took the rare step of issuing a public statement revealing that it had launched an investigation into Professor Rathjen’s conduct and also that of Rear Admiral Scarce.

ICAC commissioner Bruce Lander QC said the allegations did not involve corruption but went to “improper conduct”.

It is illegal under South Australia’s strict ICAC laws to speculate or allude to any aspect of an investigation, and the nature of the inquiry has been the subject of mystery in Adelaide circles. A university spokesman declined to comment.

Professor Brooks confirmed this week that the university was considering a range options to stem the economic impact from COVID-19 including temporary pay cuts and a hiring freeze.

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Original URL: https://www.theaustralian.com.au/higher-education/university-of-adelaide-in-global-hunt-for-new-vicechancellor-as-talk-of-merger-rekindled/news-story/35a22ef0825ed265b6f7a481c552f630