University of Adelaide insists mystery departures nothing to do with finances

The University of Adelaide says the unexplained departure of its two top leaders this week — chancellor Kevin Scarce and vice-chancellor Peter Rathjen — has nothing to do with its finances, despite admitting it is facing a budget shortfall of $100 million.

On Monday, Rear Admiral Scarce resigned as chancellor with immediate effect, cutting the former South Australian governor's term at the university short by six months.

Less than 24 hours later, Professor Rathjen took indefinite leave from the role of vice-chancellor.

The university has refused to provide any explanation for the two men stepping aside, but a spokesperson today said it had nothing to do with the financial position of the university.

"The recent announcements are not in any way related to the financial health of the university or the impacts of COVID-19," the spokesperson said.

"The university, like many institutions, is facing a budget shortfall due to COVID-19, but is in a sound financial position and is expecting a strong recovery after the pandemic has ended.

The spokesperson added that "there is no suggestion of financial impropriety".

Despite this, in an email seen by the ABC, acting vice-chancellor Mike Brooks said the university was facing a $100 million budget shortfall this year.

He said domestic enrolments had been steady for the first and second semesters and, while international enrolments were up 5 per cent in the first semester, they were projected to be down 16 per cent in the second semester.

"Given that we were budgeting for more significant growth this year, this equates to a downturn in budgeted revenue of circa $90m," Professor Brooks said.

However, he said the university had put in place a number of measures to buffer the institution from the shortfall, including a staff recruitment freeze, a pause on capital works, revised budgets and short-term borrowings if needed.

The university's council met outside its normal meeting schedule on Monday, the day of Rear Admiral Scarce's resignation.

The spokesperson said there have been "a number of additional meetings throughout the COVID-19 situation", but did not directly respond when asked about the subject of the meeting.

Premier Steven Marshall said that he had not had any "update" from the university on what was going on — although he said he had spoken to its deputy chancellor, Catherine Branson.

"I have now spoken to the deputy chancellor and offered any support," he told reporters today.

The ABC has contacted Rear Admiral Scarce and Professor Rathjen for comment.

Union wants answers, Labor suggests inquiry

State secretary of the National Tertiary Education Union, Ron Slee, told ABC Radio Adelaide this morning that his members want an explanation for the changes.

"In the absence of an explanation, rumours will go wild," Mr Slee said.

The union's Adelaide representative Nick Warner said the chancellor and vice-chancellor's announcements "come as a shock to staff at the university".

"The lack of explanation is adding to anxiety levels heightened by the COVID-19 crisis," he said.

Meanwhile, SA Labor spokesperson Stephen Mullighan has said his party may use a parliamentary committee to get to the bottom of the situation if answers about the university's situation aren't forthcoming.

"It's clear that we need some answers now," Mr Mullighan told reporters this morning.

"These universities are key to helping us recover from what's going to be a very severe economic recession here in South Australia.

"These are institutions losing tens and tens of millions of dollars."

A Labor spokesperson said representatives of the Department of Premier and Cabinet may be questioned on the subject at a hearing of SA Parliament's Budget and Finance committee next week.