Even within the spectrum of local grads, there are terrible ones and good ones. So one cant say that all UOL grads are worse than all local grads, or vice versa. I have a friend who is interning at a certain ministry now. She tells me that the local uni interns happen to be amazingly stupid. She comes from the same local uni as them too.
The kind of questions and their attitudes shows that they are unprofessional. Like basic things, like not knowing who is the minister of the ministry you are working for. Which stat boards are under that ministry. Some of them did not even know what a stat board was! Some even came to office wearing slippers. These were all local uni interns mind you, the supposed 'best and brightest'. Needless to say, my friend was pretty shocked that her peers were of that standard. She even thought she would be outclassed since ministry internships are not easy to get and her GPA is not that good. Turns out she might be the best of the lot just because she is not as bimbotic as the other interns.
If you present yourself professionally, and you are knowledgeable, it doesn't really matter which uni you came from IMO. You can succeed with a UOL degree and you can even fail with a local uni degree. Its all up to you.