The Australian Competition and Consumer Commission (ACCC) has launched court proceedings against a second private training college, saying there are clearly problems with the Federal Government's billion-dollar VET FEE-HELP system.
The ACCC will take Phoenix Institute of Australia to the Federal Court, alleging misleading and deceptive behaviour.
Phoenix Institute reaped more than $100 million in government funding between January and October 2015.
It signed up more than 9,000 students in 17,000 courses in New South Wales, Victoria, Queensland, the Northern Territory and Western Australia.
Chairman Rod Sims said the ACCC would allege Phoenix Institute targeted some of the most vulnerable people in the country, falsely telling them the courses were free and they would receive a free laptop.
"People sometimes with intellectual disabilities, sometimes people who couldn't use a computer, but the courses were all online. Not surprisingly the commencement rates were very low," Mr Sims said.
The ACCC will ask the court to recover the $100 million in government funding.
The money wasted on this program should have gone towards Gonski funding.Another ludicrous ideological policy which has failed by the Abbott/Turnbull government.