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According to an opposition leader, the businessman Agarwal's pledge last week of $1-billion to set up Vedanta University, in the South Indian state of Orissa, is a gimmick to divert attention from his corrupt mining deal with the state's government. The $1-billion pledge, which if realized would be the largest gift ever made to a higher-education institution, is intended to create a multidisciplinary elite university for 100,000 students that would open in 2008.

Despite the promises of great reforms in education made by the new President, the Soviet system is still running. Many allege that the bureaucrats involved in the renovations of schools frequently sign dual contracts with foreign construction companies, deliberately designed to allow a huge portion of the reported contract costs to disappear. Moreover, bribes are still viewed as a secondary prerequisite for university admission after one's scores on standardized entrance examinations.

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.

Continuous strengthening of internal financial control and a policy of zero tolerance for maladministration and corruption by the Ministry of Education has led to an unprecedented ongoing investigation by the Anti-Corruption Commission (ACC). Strengthened measures at the ministry uncovered suspicious incidents where there was the possibility of rogue companies benefiting from ministerial procurement.

A warning by German anti-corruption organisation Transparency International that links between higher education and business are becoming increasingly obscure has sparked an open debate. "We are observing corporate interests increasingly dominating teaching and research to a large extent,” said Director of Transparency International Germany.