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View Full Version : Push for probe on foreign student 'rip-off' (Australia)


Subwaybrum
Feb 22nd, 2007, 09:44 AM
A lot of international students in Australia are asian...

http://www.theage.com.au/news/investigations/students-told-to-take-a-holiday/2007/02/22/1171733950417.html


Push for probe on foreign student 'rip-off'

http://www.theage.com.au/ffximage/2007/02/22/svCLAIMS_wideweb__470x305,0.jpg
Wendy Meng Ying (left), Kevin Zhang and Ivy Xu want an education.
Photo: Andrew de la Rue


Nick McKenzie
February 23, 2007
Page 1 of 3 | Single page

AUSTRALIA'S elite crime fighting body has recommended an investigation into an alleged rip-off of foreign students at a private education provider in Melbourne, amid claims that regulation of the industry is failing.

The intervention of the Australian Crime Commission in the case raises fears that the thousands of international students in the booming education market are vulnerable to exploitation by bodgey operators.

In a confidential June report, an ACC officer warned also that illegal-sex-trade players could abuse student visas to bring people to Australia.

The June report outlined allegations that the International Business and Hospitality Institute (IBH) in Melbourne, set up by two Chinese businessmen in November 2005, may be exploiting overseas students and be involved in criminal conduct.

It is believed the report also raised concerns that measures to police the overseas-student trade appeared inadequate.

But eight months aftear the report recommended state and federal authorities investigate, IBH remains fully accredited.

Former IBH student Ivy Xu from China told The Age that, despite paying $6000 for a cookery course, she was told to take business studies. She said those classes ended prematurely last year and she was told to take a long holiday. Another former IBH student, Wendy Meng Ying, said she was told to take long holidays after being taught the same lessons repeatedly.

The ACC prepared the report after meeting a former senior IBH manager, Robert Palmer, who alleged that education and immigration authorities had not investigated concerns he had raised with them in June.

The Federal Government oversees the international education industry, but largely relies on states to police the sector.

Mr Palmer told The Age he contacted the ACC after the state regulator, the Victorian Office of Training and Tertiary Education (OTTE), appeared uninterested in claims that up to 30 Chinese students had been duped into handing over thousands of dollars for substandard training and classes.

As recently as a fortnight ago — seven months after Mr Palmer made his first complaint — IBH's Chinese students were being told to remain on holidays. The students also said they were refused fee refunds.

Mr Palmer, a veteran teacher who is taking legal action against IBH to reclaim allegedly unpaid debts, said the failure of education authorities to act quickly had left students open to exploitation.


"I am very, very disappointed with OTTE. It is the regulator, although when you go to it to complain, you don't even get acknowledgement.

"Only the crime commission took the time to hear my complaint. It thought there was substance to it and handed it on to the Australian Federal Police," Mr Palmer said.

An AFP spokesman last night confirmed it had received the ACC report. He said that in November, the AFP had assessed it and sent it to the immigration department.

The Victorian OTTE's director, Terry Stokes, said the regulator had conducted audits of the school last year and the school had agreed to an overhaul. He said an investigation into IBH continued and his office had recently met IBH's representatives to discuss concerns.

The chief executive of the Australian Council for Private Education and Training, Tim Smith, said he had heard of complaints about IBH only when he was contacted by OTTE a week ago.

Mr Smith said the council, which represents 11,000 education providers, took immediate action to help relocate the small number of students still enrolled at IBH.

"IBH had failed to meet the obligations to its students. We put the students first and are helping them move to other providers," he said.

Immigration consultant Bob Kinnaird said quality control of the $5 billion overseas-student education market was struggling. "It is growing like topsy but the enforcement levels are not keeping up to the pace of growth," he said.

The International Business and Hospitality Institute was set up by 22-year-old Huang "Michael" Fu and 47-year old Guanxi "Jeff" Lui.

Mr Fu claimed to have been backed by several major Chinese-based investors who wanted to set up a "world-class" education facility for overseas students that offered English, business and hospitality courses.

Mr Fu hired Mr Palmer to help the institute get the state accreditation needed to tap into the international student market.

But in May last year, three months after the business was registered and began charging students, Mr Palmer and several other teachers were dismissed and staff began to complain about the poor standard of teaching.

Mr Fu refused to be interviewed by The Age, citing his poor English and lack of current knowledge about his own business because he had been living in China.

But he denied his school had been involved in any criminal activity. In written responses to questions, he said the school had been run properly until late last year and if there were problems, they were caused by Mr Palmer's three months at the school in 2006.


But Mr Palmer complained to the state regulator and the immigration department shortly after he left the school and the audits critical of IBH were conducted months after his departure.

Mr Palmer said promises to provide proper teaching material, furniture and equipment were ignored by the institute and that questions surrounded the withdrawal of thousands of dollars from the student's trust fund.

Documents given to The Age appear to support Mr Palmer's claim that some contracts sent to students had forged signatures.

"Not only were the documents false that were given to prospective students, but the students had got visas on the basis of those documents only to find out the courses they had been offered did not match up (when they got to Australia)," said Mr Palmer."

The IBH allegations follow other scandals involving education providers and overseas students. Earlier this month, The Age revealed that Chinese nurses on training visas were being used illegally to cover shifts at nursing homes.
Top 10 nationalities

China 13,429

India 11,209

Malaysia 5768

Indonesia 3672

Hong Kong 3007

Singapore 2419

Sri Lanka 1575

Thailand 1469

Republic of Korea 866

Japan 706

Other 9681

TOTAL 53,801

SOURCE: AUSTRALIAN EDUCATION INTERNATIONAL