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International donors in Nepal on Monday suspended millions of dollars in funding. The move follows reports that the Education Minister is being investigated by a parliamentary committee over undisclosed financial irregularities. He denies any wrongdoing.

As a result of the increasing economic scandals, business universities and schools around the world are now interested in including ethics classes in their programs. They are concerned with idea that students are not equipped to deal with ethical dilemmas, therefore several activities that involve the analysis of the causes and consequences of the crises, visits to convicted of fraud and projects to change are taking place.

Operaciones y Descuentos Diversos, S.A. (Oddisa), a company chosen to prepare and distribute school lunches is under investigation for misappropriation of funds and money laundering. The many transactions, including accounts in Barbados, Luxembourg, and Paris, plus reports from schools in the provinces that stores of school-lunch products were burgled and other warehouses burned down, made it impossible to recover records.

A report from Fundación Grupo Civico Etica y Transparencia (EyT) was elaborated to show the results of the "Corruption Prevention in the Education System project". After monitoring large construction contract processes related to the maintenance of schools in rural areas, EyT found that a significant part of the Ministry of Education's public contracting budget had irregularities. It advised the Ministry to strengthen the quality control of materials and conduct regular internal audits.

The Mayor of Ngoma District has issued a stern warning to school headmasters who inflate school registers with non-existent students and charge high fees on students sponsored by charity organisations. The authorities would punish anyone found guilty.

No action has been taken against a school accused for embezzling of over Sh7 million meant for buying a bus. No audit report had been conducted at the school for the last seven years as the school head had failed to submit the accounts.

The firing of a teacher who helped expose the cheating in last year's matric exams shows that whistle-blowers' rights are badly protected. This despite the promise from the Education Minister to protect those who exposed the cheating. Seven months after the fraud in the Mpumalanga matric exams, the only person who has been penalised is one of the whistle-blowers.