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Foreign students caught in middle as liquidators move in
Australian authorities are looking for educational institutions to accept 1,000 foreign students whose Sydney college went into liquidation this month, the latest in a spate of closures to hit the foreign-education  industry.
Students who showed up for classes on September 5 at the Australian School of Business and Technology (ASBT) found the doors barred and security guards on duty.
The ASBT went into liquidation after failing to meet government training standards by using outdated training qualifications, operating from unapproved premises and  enrolling too many students, according to the NSW Vocational Education and Training Accreditation Board.
Neil Cussen, a liquidator from the accounting firm Deloitte, is going through the ASBT's books and is due to report by the end of  the month.
'I have powers to investigate the failure of the company and to see if any money has been transferred,' he said this week. 'I'm investigating the financial circumstances, especially July and August, because the June accounts suggested they were doing quite well.'
Students  at the college were mainly from China, Thailand and Egypt. There was at least one student from Hong Kong, who  said she was awaiting assistance from the Australian Council for Private Education and Training (ACPET), the national industry association.
The ASBT is the third school to close in the past six months in the privately owned business college sector that recruits fee-paying students from around the world, mostly Asia.
In February, the high-profile Global College closed after failing to renew its registration with the government accreditation board.
The college, which had 1,200 students, was known for helping international students get permanent visas through its business, hairdressing and commercial cookery courses.
The college  now has permission to run English classes until April.
The Melbourne-based Academy of Australian Trades, with 35 students, closed in August. That month, the Sydney International College of Business  was ordered to shut after  New South Wales state authorities claimed it was understaffed, with overcrowded classes in illegal kitchens. The college won an appeal against the decision, and its campuses in Sydney and Melbourne can remain open until at least December 5.
Andrew Smith, chief executive of ACPET, which has 1,150 members,  denied the closures were a sign of trouble in the Australian education market, saying:  'Australia has the best legislative regulatory framework in the world.
'The strength of the system is  that within 28 days, students are offered a place in another college. I don't believe there is another country in the world that has a consumer-protection framework as robust as Australia's.'
But Ian Steep, a former director of studies at the ASBT, said safeguards for students were inadequate and the private-college system needed tighter controls.
'It's a free-for-all. Legislation allows shonky  operators to set up, and inspections are only carried out after 12 months, and then every five years. It allows schools to operate unsupervised and unaccountable for too long,' Mr Steep said.
Jacqui Verrall  from ACPET has been working to place the ASBT students in other Sydney colleges.  The deadline for student relocation requests was  last Friday, but 200 students had yet to contact the  authorities.
Ms Verrall said visa restrictions had been lifted so  students could work while they waited for a place.
For those who choose to study overseas, it is a case of buyer beware, according to Yunnan University business graduate Pan Tao, 30, who left Guizhou province  to study in Australia in 2003. Now a permanent resident, he has a business degree from Charles Sturt University  and is studying fashion at  TAFE NSW.
Mr Pan put his successful  study experience down to his use of a nationally recognised government education agency in China and the fact he researched his choices.
'It pays to look at lots of different options. Don't just believe what agencies tell you,' he said.
Education has replaced tourism as Australia's third-biggest export industry, with a total value of A$12.5 billion (HK$77.16 billion), trailing only coal and iron ore.
A spokesman for the NSW Vocational Education and Training Accreditation Board said vocational education and training was the overseas-student market's fastest-growing sector, and quality assurance in the area was taken seriously.
'The board works closely with the Commonwealth and the training industry to improve provider performance and to support students,' he said.



1,000 left in limbo as third college closes in Australia