This is my experience when i was a Research Assistant in a local Uni last time. I can only wonder if it has become worse...

1) Simply apply for gov grant by using ideas from the Iranian/Middle East students
2) Get the grant, but some of the money the lecturer will songlap. Not sure how maybe through salaries/crony vendors etc.
3) Just barely do some research to publish a paper or two in a low impact journal/publication
4) Lecturer misuse the money to "present" the paper in a foreign country
5) ???
6) Profit and rinse and repeat

@azarimy, maybe you can clarify this if i am wrong.