Harvard and Yale universities investigated for possible non-disclosure of foreign money

CAMBRIDGE: The US Department of Education said on Wednesday (Feb 13) it has opened an investigation into whether the universities of Harvard and Yale failed to report hundreds of millions of dollars in foreign gifts and contracts as required by law.

Yale University in New Haven, Connecticut, may not have reported at least US$375 million in foreign money over the last four years, the department said in a statement.

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"This is about transparency," US Secretary of Education Betsy DeVos said in the statement. "If colleges and universities are accepting foreign money and gifts, their students, donors, and taxpayers deserve to know how much and from whom."

Federal law requires most colleges and universities to report gifts from and contracts with foreign sources that are more than US$250,000 twice a year.

Education department records over the last three decades show US universities and colleges have reported more than US$6.6 billion in donations from Qatar, China, Saudi Arabia and the United Arab Emirates.

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"This sum may be significantly underestimated," the education department said.

Yale received a request from the department on Tuesday for records of certain gifts and contracts from foreign sources under Section 117 of the Higher Education Act of 1965, said university spokeswoman Karen Peart.

"We are reviewing the request and preparing to respond to it," she said.

The education department said that it is also concerned that Harvard University in Cambridge, Massachusetts, lacked the proper controls over foreign money and may have not fully reported all donations and contracts coming from outside the United States.

Harvard did not respond to a request for commentRead More – Source