The Education Department has recouped and withheld more than $20 million from training providers as part of its "quality blitz", which started last month.

The investigation has identified fraudulent claims for training that never occurred and unauthorised subcontracting of training delivery.

Training colleges have also come under fire for flouting a ban on offering inducements such as iPads and laptops to prospective students.

It is likely that some providers who have engaged in serious misconduct will be referred to police.

A further 17 training organisations have been placed under case management, where they will be closely monitored. The department has withheld $14.9 million from these providers while their investigation continues.

In a Victorian first, the state government has named and shamed the training colleges that have had their contracts terminated.

They are the Management Institute of Australia No 2, Imperial College and MWT Institute.

Other providers will be added to this list, which will be published on the department's webpage.

Training and Skills Minister Steve Herbert said naming the providers would improve transparency and accountability in the sector, and reduce uncertainty for students and teachers.

Mr Herbert, who will update state parliament on the audit on Tuesday, said Victorian taxpayers should not have to pay for substandard training.

"Numbers on paper and the proliferation of certificates is meaningless if they don't lead to jobs," he said.

"We're interested in high quality training for young Victorians that leads to jobs, and means real productivity for industry."

He said that the majority of providers complied with the rules.

The $9 million quality audit has already recovered $6 million, which will be spent on improving the quality of training.

It was initiated after a government-commissioned review identified substandard training, rorting, exploitative marketing practices, poor auditing and unsuitably short courses.

Almost 10 per cent of providers were found to have high levels of risk, according to the Deloitte report.

It is unknown how many students will be affected by the enforcement action.

Earlier this month, The Age revealed that training colleges were taking kickbacks in exchange for helping overseas students win Australian visas using fake qualifications.

But these providers had not been contracted to deliver state government training since 2014, so they were not targeted by the latest audit.

The vocational education and training sector receives $1.2 billion from the state government every year.