Senior leaders from the University of Wollongong have faced intense scrutiny from a NSW parliamentary inquiry, forced to explain a series of controversial financial decisions as the institution's fiscal position deteriorated.
Questionable Partnerships and Lavish Renovations
The inquiry, chaired by Dr Sarah Kaine, zeroed in on what were described as "odd" partnerships and costly preparations for a visit from the now-disgraced former prince, Andrew Mountbatten-Windsor. Executives confirmed that expensive bathroom renovations were undertaken ahead of his planned visit.
Questions were also raised about a partnership with English Premier League football club Tottenham Hotspur. Dr Kaine suggested the deal, signed off by a deputy vice-chancellor for global strategy, appeared to have "very limited benefit to the university" but involved numerous overseas trips for senior staff. UOW Deputy Chancellor Warwick Shanks defended the move, stating its intention was to attract international students interested in football and to develop a soccer academy relationship.
A $169 Million Student Accommodation Disaster
The committee uncovered staggering losses from a public-private partnership for the Kooloobong student accommodation campus. UOW recorded a $169 million loss after being forced to buy back the development due to contract penalties linked to occupancy levels.
Mr Shanks explained that the contract with developer Living & Learning Custodians Pty Ltd included penalty payments if minimum occupancy was not met. The COVID-19 pandemic made hitting those targets impossible. "Forecasting into the future, the cost of the contribution to meet those payments was significant," Shanks said. The negotiated termination resulted in the massive loss but allowed UOW to now run the residences and earn the income directly.
Links to Prince Andrew and Ongoing Scrutiny
The inquiry also examined the university's links to Prince Andrew, specifically the "Pitch @ Palace" business event hosted at UOW's Innovation Campus. Dr Kaine suggested the university might want to remove material still promoting the event from its website.
Mr Shanks, who answered many questions due to his long tenure, revealed that university executives were sent to the palace as part of the initiative. He stated, however, that he was not aware of the costs associated with that overseas attendance.
The hearing, which spent an entire day focused on UOW, also touched on the planned aged care precinct and a conflict of interest related to former interim vice-chancellor John Dewar. The inquiry into the NSW university sector continues.
