Australian Careers Network has revealed the federal department of education has extended the freeze over its funding until January 16 so a thorough investigation can take place into the company's affairs.
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The deferral of crucial payments to Australian Careers Network's Phoenix Institute comes only days after a company director resigned "effective immediately" from the company board after only joining four months earlier.
A spokesman for Australian Careers Network declined to comment on whether the company would seek to extend the voluntary suspension of its shares until January 16.
Australian Careers Network shares are currently suspended until December 18. They last traded at $3.43.
Over the past 12 months the company has run into trouble due to compliance and quality issues at three of its colleges: Australian Management Academy, Consider This Training and Phoenix Institute.
Australian Careers Network announced on Monday night the Phoenix Institute, which is one of Australian Career Network's largest colleges, had its federal funding payments due on December 15 deferred to January 15.
It's the second deferral to hit Phoenix, which had its October 15 payments deferred until November 30 last month. The October 15 payments have also been deferred to January 16.
"Such deferral is to allow the Department to conclude its investigations into whether all Phoenix student enrolments are bona fide, students have been offered prohibited inducements to sign up to courses and whether Phoenix has satisfied the tuition assurance requirements," Australian Careers Network chief executive Ivan Brown said.
The deferral came only days after ex TAFE NSW Hunter Institute general manager Samantha Martin-Williams stepped down.
"Samantha Martin-Williams has extensive professional commitments and demands on her time, and feels she cannot devote sufficient time as a member of the ACN Group Board while it meets the current regulatory compliance requirements," the spokesman said.
"The company has been systematically dealing with the issues in recent weeks, and this has demanded a significant amount of attention from the board. However, all Directors are confident that, although it will necessitate a period of intense effort and commitment, the company will successfully address any outstanding issues in line with government expectations," the spokesman added.
Ms Martin-Williams did not return messages left for her at other businesses where she is a director.
Australian Careers Network's troubles comes as the federal government introduced a bill into the Senate aimed at tightening regulations in the sector that has garnered much bad press in recent months. The Turnbull government dropped a series of last minute amendments to its own bill on Tuesday following a push by the ALP to introduced their own amendments that were also aimed at cleaning up the sector.
The federal government is looking to ban inducements, such as laptop computers, being offered by education brokers to would-be students to encourage enrolments.
Other reforms would give the federal government power to react to student complaints by cutting off funding to registered training organisations.