Australian Institution Investigated for Criminal Conduct
By: Greg Donaghue, Australia
A private higher education institution in Melbourne, Australia, is being investigated for criminal misconduct according to The Age newspaper. The International Business and Hospitality Institute (IBHI), established by two Chinese businessmen in 2005, is accused of exploiting overseas students. It is alleged amongst other matters that up to 30 Chinese students have been deceived by the institute by being told to “take long holidays” during scheduled term dates, taught the same material repeatedly and being transferred to classes that they hadn’t enrolled in.

Within three months of IBHI opening for business a number of teachers were also dismissed and those staff that remained complained of under-resourcing, unpaid wages and poor quality of teaching.
The need to ensure that foreign students receive value for money and quality education in Australia is vital. In 2005 Education ranked as Australia’s 4th largest export. In the 2005-06 financial year A$9.8 billion (approximately €5.89 billion) was earned from international students studying in Australia. With the vast majority of these students coming from Asian countries with their own increasingly competitive higher education institutes, reports of even a few sub-standard courses in Australia could begin to damage the reputation of the entire sector.
As well as the potential issue of criminal behaviour having occurred in this instance, the case of IBHI highlights the difficulties of regulating private higher education providers in a growing and dynamic marketplace. Australia has a Federal system of government, with the legal and practical responsibility for international higher education sometimes becoming blurred. While the Commonwealth government is responsible for overseeing the international education industry, in practice it relies upon the States to police institutes locally. While the Victorian government has carried out its duty by auditing IBHI and demanding an overhaul of its operations, Immigration consultant Bob Kinnaird is quoted by The Age as saying that with regard to international education regulation “enforcement levels are not keeping up to the pace of growth”.
Students duped by IBHI appear to have finally received some good news. The Australian Council for Private Education and Training has taken action to assist effected students to find more suitable courses. For situations like this to be prevented in the future however, all levels of Australian government will need to ensure that responsibility for oversight and enforcement of international education is clearly defined and carried out.
Greg Donaghue is a first year student in the Erasmus Mundus HEEM programme. He has Bachelor degrees in both Arts (Political science major) and Law from Monash University. Prior to joining this programme Greg worked for several years as a Senior Policy Officer in the Department of Education and Training in Victoria, Australia. He has also worked as a corporate and commercial lawyer.









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