What it really boils down to is that the money wasn't going to the universities it was being distributed by a middle man to bribe key individuals for preferential treatment. 

Only problem is these payouts were given to people that had no idea how to hide that kind of money and justify the increased cash intake. One administrator bought a multi-million dollar house on the water. The $ used didn't go to a new library or wing. It went under the University's radar and that's where the problem started.