Vic: College deals risk public money: vice chancellor

AAP General News (Australia)
12-17-1999
Vic: College deals risk public money: vice chancellor

MELBOURNE, Dec 17 AAP - Hundreds of thousands of dollars are at risk when universities
accept students from business colleges, a university vice-chancellor warned today.

The universities run the risk of the business colleges collapsing, leaving large debts,
Central Queensland University (CQU) vice-chancellor Lauchlan (Lauchlan) Chipman said today.

Professor Chipman cited the case of Ballarat University which was "$700,000 worse off
because a joint venture (with a business college) went belly-up".

Business colleges which collected fees on behalf of universities for university subjects
delivered on their sites were not obliged to hold the funds in trust, he said

"If funds are paid to a third party you're very much dependent on your business assessment
of how well they're performing," Professor Chipman said.

Professor Chipman, who was in Melbourne to address a CQU graduation ceremony, said
when the business college went belly-up, Ballarat university had to cover the shortfall
with government-sourced funds.

AAP st/ag

KEYWORD: COLLEGES

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