- How the Minister of Education got rich by selling a state-funded college

Borut Rončević, currently serving as Slovenia's Minister for Education, Science, and Youth, has been revealed to have profited significantly from the sale of a private university he co-founded, which receives substantial public funding. The transaction, involving the Faculty of Applied Social Studies (FUDŠ), took place shortly before the general elections and has raised questions about potential conflicts of interest and financial gains from a publicly funded institution. The faculty was established in 2006 by Rončević along with Matej Makarovič and Matevž Tomšič. It operates under a concession agreement with the government, allowing it to offer programs in social sciences while receiving a portion of its funding from public sources. Last year alone, FUDŠ generated €3.5 million in revenue, nearly half of which came from state funds. Over the past decade, the institution received almost €11 million in public money, primarily from the Ministry of Education and the Research Agency. Rončević, Makarovič, and Tomšič were instrumental in shaping the private higher education landscape during the early years of the government led by Janez Janša. They played key roles in developing media policies and reinforcing the ideological framework of the Slovenian Democratic Party (SDS). Rončević held several influential positions within the education sector, including director of the Directorate for Higher Education and Science under Žiga Turk (SDS) and later president of the board of Radio Television Slovenia (RTV). In April 2024, the trio sold 51 percent of their ownership in FUDŠ to Alenka Žnidaršič Kranjc, one of Slovenia’s wealthiest individuals and owner of Prva Group, which operates in insurance and pension fund management. This sale marked a significant step in their strategy to liquidate their investment in the university. However, the exact amount paid for this stake remained undisclosed until recently. According to available information, the sale of the 51 percent share brought the three founders at least €2 million collectively. This implies that Rončević personally received more than €100,000 from the transaction. Despite selling their majority stake, Rončević and his associates retained certain assets linked to the university, including premises that the new owners now lease. The timing of the sale coincided with a period of intense political activity ahead of the general elections. The decision to divest from FUDŠ came after years of involvement in shaping the institution's policies and securing public funding through concessions. Critics argue that Rončević’s role in both the government and the private university created a conflict of interest, particularly given the substantial public funds allocated to FUDŠ over the years. The sale of the 51 percent stake was initially reported by the news outlet Reporter in April 2024. At the time, there was no public disclosure regarding the purchase price, leading to speculation about the financial implications for the former owners. Now, with the revelation of the total proceeds, the focus shifts to understanding how these funds will be used and whether they influence Rončević’s current ministerial responsibilities. The Faculty of Applied Social Studies continues to operate under its new ownership, having secured significant public funding in recent years. The transition of control raises concerns about the governance of institutions that receive public support while being privately owned. Questions remain about the transparency of such transactions and the extent to which public funds benefit private entities. Rončević and his associates have maintained ties to the university even after the sale, retaining physical assets and possibly influencing its operations indirectly. Their continued involvement underscores the complex relationship between public policy and private enterprise in the realm of higher education. As the situation unfolds, further scrutiny is expected regarding the financial dealings and their implications for public trust in educational institutions.