The setting up of the American University of Malta has had its fair share of controversy. In May 2015, the Jordanian Sadeen Group signed an agreement with the government for the establishment of a private educational institution. The Prime Minister’s Office often insisted the proposed university was meant to promote social and economic investment in localities in the south of Malta.

Many argued that the price paid for this pious intention was far too high as valuable seafront public land in Marsascala was being given to a private entrepreneur, even if the details of the contract have so far not been made public.

So the news that the AUM management has lowered its student intake projections for next year following clear instructions from its Jordanian investors comes as no surprise to those experienced in scrutinising feasibility studies and business plans for private sector projects. AUM owner Hani Salah is reported to have visited Malta several times and demanded concrete results from the university staff, particularly from the Provost, John Ryder.

On the website, Prof. Ryder states that the AUM “commits itself to its students, to its community and to the highest standards in teaching, research and service”. So far, he has not delivered on this commitment. In fact, the AUM continues to suffer from controversies beyond the severe environmental and ethical issues that plagued the project in 2015. The Opposition has just presented a motion for the government to reclaim a site in Żonqor Point, Marsascala, where the AUM planned to have a campus.

Some have even questioned the legality of the AUM’s employment policies and practices. It is reported that, in a few months, 10 employees left the university either by dismissal or resignation. Some of them claim unfair dismissal. But Education Minister Evarist Bartolo told Parliament the AUM was not a “garage operation”.

Allegations of ethical malpractices by the AUM owners are another cause of concern to the public. The appointment of a member of the AUM’s board of trustees while under investigation over allegations of laundering money and kickbacks does nothing to enhance the trust an educational institution should project to attract students.

Questions need to be asked – and be candidly answered – if the government’s support for this investment is to pass the test of reasonableness. Who vetted the AUM’s business plan, especially the income projections, before the government offered its generous incentives? Now that the original plans have changed, is the Prime Minister still convinced the AUM will have 4,600 students by its 10th academic year and that this €115 million project would create 400-750 jobs?

When research professor Philip Altbach expressed fears about the amount of “business interests starting universities to make money using the American brand”, like the AUM, he certainly made a valid point. What matters to most Maltese people is not so much the AUM brand but whether this direct foreign investment is just an expensive white elephant that does not benefit the local community.

Every government makes mistakes. When these errors prove challenging to maintain, the government should try to recoup as much of its public investment in struggling private projects as possible.

Policymakers will agree that our educational system has more urgent priorities than the setting up of a second lame university.

This is a Times of Malta print editorial

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