Taib Mahmud (centre) holding court. Image credit: Wikimedia Commons

Australian universities have been confronted with a new cautionary tale about the perils of accepting donations from potentially corrupt foreign officials.

Adelaide University named its forecourt in honour of alumnus Taib Mahmud -- the controversial Governor of the Malaysian state of Sarawak in 2008. It has now stripped him of that honour -- but declined to return $400,000 he donated.