Harvard University, still reeling from the resignation of Larry Summers as its president, is seeking to clear up another controversy dogging its reputation.

The university is investigating the professional conduct of Andrei Shleifer, the economics professor accused of defrauding a US government programme designed to help bring capitalism to Russia in the 1990s.

Prof Shleifer allegedly made personal investments in the former Soviet republic when he was working under contract to privatise Russian companies. In an out-of-court settlement reached in August after the government took legal action, Harvard agreed to pay $26.5m and Prof Shleifer $2m, though neither party admitted wrong-doing. [That figure should be upped to $44 million -- add lawyers’ fees, stir briskly.]

According to people familiar with the investigation, the Committee on Professional Conduct, an ethics board comprised of eight members of the faculty of arts and sciences, has been looking into the Shleifer affair for several months. The committee will soon make a recommendation to the dean of the FAS about whether any disciplinary action should be taken, including possible termination of his contract. [Don’t get excited. Remember Harvard’s pathetic response to the rash of plagiarisms among high-level law school faculty last year.]

The fact Prof Shleifer, a close friend and colleague of Mr Summers, has so far not been subjected to disciplinary action has caused outrage in US academic circles. In recent weeks, several prominent faculty members have become increasingly outspoken on the Shleifer case. They say it represents one of the university’s darkest hours and could harm its credibility with federal aid agencies if no action is taken. [Finally people are noticing it and bringing the right language to it. UD wondered if that would ever happen.]

Harry Lewis, professor of computer science, and author of the book Excellence Without a Soul: How a Great University Forgot Education, said: “To this day … no one has said it’s a shame that Harvard did this, it was wrong. No one has said it’s a stain on the university.” [That’s right. Harvard needs to find its most florid orator and let it rip.]