Three unscrupulous training colleges have had their contracts terminated and another four will soon lose state government funding after a crackdown uncovered serious fraud and misconduct.
The Education Department has recouped and withheld more than $20 million from training providers as part of its “quality blitz”, which started last month.
The investigation has identified fraudulent claims for training that never occurred and unauthorised subcontracting of training delivery.
Training colleges have also come under fire for flouting a ban on offering inducements such as iPads and laptops to prospective students.
It is likely that some providers who have engaged in serious misconduct will be referred to police.
A further 17 training organisations have been placed under case management, where they will be closely monitored. The department has withheld $14.9 million from these providers while their investigation continues.
In a Victorian first, the state government has named and shamed the training colleges that have had their contracts terminated.
They are the Management Institute of Australia No 2, Imperial College and MWT Institute.
Other providers will be added to this list, which will be published on the department’s webpage.
The issues identified at the providers included fraudulent claims for training that did not occur and unauthorised sub-contracting of training delivery.
They also offered incentives or inducements to students to undertake funded training, which is prohibited.
The Government said the $6 million recovered as a result of the cuts would be “re-invested into further measures to improve quality”.
“Poor quality, dodgy or non-existent training or breaches of contract are no longer acceptable,” Minister for Training and Skills, Steve Herbert, said.
“I’m hoping that will send a strong message to the industry and those that are perhaps not doing the right thing will get out.
“The next thing for the Government is to implement the 19 recommendations of a major review of quality.
“One of those was that there should be more transparency on this and the Department of Education will be publishing from this date on the names of those who have had their contracts terminated.”
He said the Department of Education would refer cases where there had been serious misconduct to the police.
The Government said investigations into providers were continuing, with a further 17 under case management.