Last night Four Corners ran an expose on the scams run by certain private vocational training colleges and some immigration and education agents. I emphasise some because there are very many such agents who are totally ethical, and ditto for the better established private colleges. In fact one of the principal whistle blowers is himself an immigration and education agent.
According to ABC this morning the Indian press has reacted by invoking racism: ‘It’s racism’: Indian media seizes on student scam report.
Another storm of controversy has broken out in India over revelations that Indian students are being ripped off by unscrupulous operators in Australia.
Last night’s Four Corners program on ABC1 detailed how students had paid tens of thousands of dollars for services they claim they never received, and how allegations were made to the relevant government authorities but their complaints were ignored.
An Indian journalist, working undercover for the program, was also attacked after investigating alleged corruption by immigration agents.
The latest incident has seen the Indian media slip into tabloid high gear.
I am not for a moment denying there are racist elements in the story but would still say Australia is no more racist than anywhere else. I have addressed that before: More on “Racism? Yes and no” and here and here. It is true that the Flying School singled out in the Four Corners story is alleged to have behaved in a racist manner, but the other examples were of Indians here and in India exploiting both the system in Australia and their Indian clients.
Reporter Wendy Carlisle reveals how dodgy business practices are being used to rip off foreign students seeking legitimate qualifications in Australia. At the same time she also shows how vocational training for foreign students has become an immigration scam allowing thousands of foreigners to come to, and then remain in, Australia under false pretences.
For ten years now Australia’s foreign student education sector has been on a massive growth spurt. First it was foreign students seeking university degrees. More recently it’s the vocational education sector that’s been expanding.
Last year more than 70,000 Indian students came here to buy an education. Egged on by immigration and education agents, many were told if they enrolled in cooking, hairdressing and accounting courses they would not only get a diploma but they could also qualify for permanent residency in Australia.
Now a major Four Corners investigation reveals that foreign students in this country have been targeted by unscrupulous businessmen, who have set up training schools that supply qualifications that sometimes aren’t worth the paper they are written on.
"It is a fraud because we were shown so many rosy pictures about the school and it is not what it was really… it was just a scam." – Parent of Indian student
"We all know that they have sardine type cooking classes where there’s sixteen students to a frypan." (Corruption investigator)
Bogus courses though are not the only scam going on. If a student wants to apply for permanent residency they must pass an English language test. Four Corners has found clear evidence that unscrupulous immigration and education agents are offering English language tests for a price. In some cases the exam paper is worth up to $5,000…
In this morning’s Sydney Morning Herald we read that “Students have been dealt a major blow after a Sydney college went into administration on Monday night.”
More than 500 students have had their courses halted and face the loss of thousands of dollars in fees. All 35 college staff have been sacked.
"Late on Monday afternoon Dr Dharmappa Hagare, the sole director of Sterling College Pty Ltd, which operates the group’s Sydney training facilities, made a decision to appoint Quentin Olde and Matt Adams of Corporate Recovery Specialists, Taylor Woodings, as voluntary administrators," the administrator said in a statement.
Taylor Woodings said the college’s Brisbane campuses, part-owned by Dr Hagare, would remain open for the time being.
The Sydney campuses specialised in teaching IT, language and hospitality courses.
"Students have unfortunately been severely impacted by the failure of Sterling College and have had not only their education process suddenly halted, they also face the prospect of a financial loss as most of their tuition fees have been paid in advance," Taylor Woodings said…
So the story is primarily one about corruption, greed, exploitation, and government inaction. The cash cow was devised (unwittingly perhaps) by the Howard government, but the Rudd government has also sat on its hands rather too much, to the great detriment of Australia’s reputation in what is in fact one of its greatest export earners, greater than wool and wheat combined in fact. As Four Corners noted:
For some time now the Federal Government has boasted about the growth in the foreign education sector. But some experts now believe the time has come for the government to stop the corruption. The question is: does it have the will?
"Well basically they’ve been bedazzled by the dollars …they could proudly say this is a $15 billion industry, more than wheat, wool and meat put together, there’s perhaps an understandable reluctance to look at the foundation of the industry." – Bob Birrell, from the Monash University’s Centre for Population and Urban Research
If the government refuses to clean up the scams and the corruption many believe it could destroy the $15 billion industry. As one young student told the program why would you pay for a service that is not provided?
"Obviously I am very angry. I’ve like taken a loan. It’s a big loan and I paid the money to the school. I came here for a purpose… I haven’t got anything." – Indian student.
One of the Australian Indian figures exposed on Four Corners has now become the object of Federal Police attention, we were informed in a note at the end of Four Corners.
Certainly this industry needs to have the cleaners put through it.