US: Top Universities Fail to Report International Funds

Cornell University received over $1.2 billion as unreported international funds in the preceding years

Top US Universities Fail to Report International Funds

A block in Harvard University

TED NewsDesk, New Delhi: In a recent report on schools and foreign contracts, the U.S. Education Department revealed that Cornell University received over $1.2 billion as international funds in the preceding years. However, it did not provide information to the U.S. authorities beforehand, the department said on Tuesday. Out of the total funds, $760 million came from the Qatar campus whereas Huawei Technologies Co., a Chinese telecom company, paid $1 million based on a contract.

The department issued a 34-page report with censored names of universities including Cornell but other details and reference to the respective schools by the department made things recognizable. When asked for a clarification, U.S. universities called the reports dissatisfying thus defending their foreign associations.

U.S. institutions are technological treasure troves where leading and internationally competitive fields, such as nanoscience, are booming. For too long, these institutions have provided an unprecedented level of access to foreign governments and their instrumentalities in an environment lacking transparency and oversight by the industry, the department, and our partner agencies,” alleged the reports from Education Department.

The Education Department carried out an extensive survey in 2019 to supervise whether or not the U.S. Universities inform about each foreign fund and contract. The entire fund sums up to approx. $250000 in a year. As per an old protocol, the law permits receiving of funds only when the institutions inform about the same to the department.

Owing to the foreign money restrictions, the department might likely condition access to engagement in federal student-debt schemes.

Voicing its concern about the act, the government said that foreign-funding can put things at greater risk. It may also enable the international government to access encrypted materials. Apart from this, they can also chain academic liberty in some courses.

The Department of Justice charged the authorities concerned for violating the statute which directs the international citizens and governments to introduce such transactions. In one such charge, a Republican fundraiser accepted his offence on Tuesday.

As per the new report, the supervisors of the Education Department discovered that “many large and well-resourced institutions of higher education have aggressively pursued and accepted foreign money,” without obeying the laws and consequences.

“Evidence suggests institutional decision-making is generally divorced from any sense of obligation to our taxpayers or concern for our American national interests, security, or values,” the report stated.

Further, the reports revealed that a school, known as Georgetown University, allied with the Central Committee of the Chinese Communist Party, acquired $2,360,807 from “significant intermingling” with China. The university used the central committee’s Party School to share curriculum with Communist functionaries. When asked for a clarification, U.S. universities called the reports dissatisfying thus defending their foreign associations.

A Georgetown representative told that the school’s tax payment column depicts a somewhat similar dollar amount in the regional expenses. She further denied the allegation of exchanging gifts or contracts based information with foreign entities and called the report “a bit puzzling.”

Following the discovery of $6.5 billion as illegal funds of U.S. universities in 2019, the Education Department laid out investigations of top-ranking universities- Yale University, Harvard University, etc. The new report covers Georgetown, Cornell, Texas A&M University, Rutgers University, the University of Maryland and the Massachusetts Institute of Technology. Other institutions/schools are yet to undergo investigation.

Accepting the past glitches in university’s reports, a Cornell speaker assured that the institution has been filing accurate data of the international funds since July 2019. Cornell University pleaded guilty to its failure to inform the authorities about the Qatar branch, as per the reports. A medical school branch of the university is in the Gulf country.

Several schools informed that Huawei paid millions of dollars for the technology which through its equipment can help in spying according to U.S. national security officials. The company, however, called the allegations as baseless.

In 2018, American universities abandoned Huawei funds on a massive scale owing to U.S. security. Some schools signed a contract beforehand which trapped them. MIT, one among the many other universities, received $11 million in an agreement with Huawei in 2013. The contract constituted research consensus, donations for schemes, projects and so on, the report stated.

When asked for a clarification, U.S. universities called the reports dissatisfying thus defending their foreign associations.

The MIT spokesperson said that the institution currently has no bonds as such and it has been following a suitable way to improve its international contract and gift reporting since January 2019. The fundamental topics of Huawei funded bonds were robotics, online cloud services and semiconductors along with other competitive industries.

After the Education Department’s clampdown, universities self-reported some $6.6 billion from Saudi Arabia, China, the United Arab Emirates and Qatar, with an extra $1.05 billion coming from those countries in the course of most recent reporting, which ended on July 31, the report added.

The department would seek opinions on international gifts from individual auditors of schools. Besides, it may assist the Department of Justice in taking actions against these institutions.

This agreement raises concerns that China seeks to leverage its relationships with American universities to dominate a global market—in this case, the facial recognition market and the artificial intelligence market, at large,” the report explained.

The report described, for example, a contract between a university identifiable as the University of Maryland and Chinese e-commerce giant Alibaba Group Holding Ltd. to develop algorithms for crowd-surveillance capabilities. Multiple areas of significant research also lead the universities to partner with foreign associates. The report outlined the authorities’ aim to increase public discourse about such pointers with the help of disclosures.

 

Source: Live Mint