The University of Wollongong (UOW) has a legal obligation to support the Illawarra region, while also managing five campuses overseas. However, a recent inquiry by the New South Wales (NSW) Parliament has raised concerns that UOW may be compromising essential social services in favor of corporate objectives.
Steve Whan, the NSW Minister for Tertiary Education, has stated he is reviewing the recommendations made by the inquiry. This scrutiny comes in light of worries that UOW is not adequately fulfilling its local responsibilities as it expands its global operations.
This week, the NSW parliamentary inquiry into the university sector published an interim report that includes four urgent recommendations for both UOW and the University of Technology Sydney. Specific issues were highlighted regarding UOW’s management of its campuses located in Dubai, Hong Kong, Malaysia, India, and Saudi Arabia.
The report expressed concerns over UOW’s plans for a significant restructuring expected in 2025, which could divert attention from its obligation to the Illawarra region. Sarah Kane, chair of the Upper House inquiry, warned that the university risks “sacrificing fundamental social benefits in the pursuit of corporate outcomes.”
Dr. Kane criticized the existing governance and reporting structures, stating they lack the “transparency, accountability, and assurance” that should be standard in the educational sector. Unlike many other institutions, UOW has a specific mandate to support the local region.
Fiona Probyn-Rapsey, former president of the National Tertiary Education Union’s UOW branch, questioned whether the university is living up to that commitment during her testimony. She pointed out that while UOW reduces its offerings in the Illawarra and South Coast, it continues to launch new campuses abroad. “UOW operates more overseas-controlled entities than any other university in New South Wales,” she remarked.
Amidst these developments, academic representatives have raised alarms about Global Enterprises, the university’s commercial arm that manages its overseas campuses and employs over 1,500 individuals. Marissa Mastroianni, the CEO of Global Enterprises, informed the inquiry that the governance structure resembles that of a private corporation rather than a public university.
The interim report also flagged concerns regarding the lack of transparency in governance, particularly related to the hiring of external consultants. A report from ABC Four Corners earlier this year revealed that Australian universities are spending approximately $1.8 billion annually on external firms without clear disclosures regarding the specific services provided.
The interim report recommended reducing or eliminating exemptions that allow universities to keep consultancy engagements confidential. Dr. Kane expressed frustration over the difficulty in obtaining a clear picture of UOW’s expenditures on consultants, noting that similar practices are widespread across the sector.
This issue gained further attention when it was disclosed that John Dewar, a former interim vice chancellor at UOW, continued to work part-time for the consulting firm KordaMentha while transitioning to an academic role in 2024. Just days after his employment began, UOW invited KordaMentha to tender for a $3.8 million operational review, a contract they ultimately secured.
During questioning at the inquiry, Professor Dewar acknowledged the “perception” of a conflict of interest but insisted he was uninvolved in the decision-making process or oversight of the consultancy work.
In response to the interim report, the University of Wollongong released a statement acknowledging its findings. “We recognize that the report and its recommendations are now under government consideration, and we look forward to the final report,” the statement read. “We appreciated the opportunity to engage in the inquiry, as we believe that trust in our universities is crucial.”
Minister Whan indicated that he is contemplating the inquiry’s recommendation for a detailed report on UOW’s commercial activities. “I certainly take into account the committee’s suggestion that we request a report on that matter, and I am currently considering it,” he stated.
