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A seven-month investigation revealed that a number of Chile's universities are illegally operating as profit-oriented businesses. According to a report conducted by a special investigation committee, eight universities violated anti-profiteering laws amidst findings of increased salaries among executives, circulation of finances between companies under the same private ownership and outsourcing of services as means of generating revenue.

According to investigations conducted in Nicaragua, among the 3 500 teachers from autonomous colleges who actually collect a salary on a monthly basis, in reality only 1 945 of them are actually teaching. At least 555 individual salaries are therefore paid to fictitious teachers or to individuals falsely (fraudulently) using the names of teachers.

The U.S. Education Department last week proposed new rules that would loosen a ban on incentive compensation for college recruiters and get rid of a financial-aid regulation. The proposal to eliminate the 12-hour rule follows years of debate. Distance-education providers have pushed the department and Congress to throw out the regulation, but others have cited fears that relaxing the rule would lead to fraud.

Politicians obliged universities to hire friends in return for help in ensuring a steady flow of funds. By forging documents and bribing appropriate officials, university staff secure larger retirement checks than they are entitled to and retire before the customary age.