19 September 2014
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Trading of shares in ASX-listed VET provider Vocation was temporarily suspended on 19 September at the request of the company, given ongoing speculation regarding its Victorian government funding contracts. Trading resumed on 22 September.
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Trading of shares in ASX-listed VET provider Vocation has been temporarily suspended, at the request of the company, given ongoing speculation regarding its Victorian government funding contracts.
Since listing in December 2013, Vocation has derived 80% of its revenues from subsidiary BAWM, most of which (90%) comes from Victorian government VET funding.
However, that funding is being withheld, pending the outcome of an audit of courses provided by Vocation.
The Australian Financial Review reports that the audit may relate to the practice of “channelling”, whereby a provider enrols students in courses other than what they originally intended to enrol in, in order to receive a greater level of government subsidy. A previous audit of BAWM, in December 2013, found evidence of channelling.
Vocation states that the audit relates only to three of the courses conducted by Vocation and payments are being withheld from two of Vocation’s four Victorian RTOs. Its two other RTOs continue to receive funding.
The audit is to be completed by 31 October.