In April, about 800 Paraguayan teachers were allowed to miss class to participate in a day of team-building activities at a retreat outside the capital of Asuncion, CNN reported.
However, a cell phone video from the event that was later leaked to the media showed shirtless male strippers dancing with female teachers.
Education Minister Marta Lafuente said her office is investigating 79 school directors who participated in the retreat.
"The concern is, well, education is an essential service. So what are our motives for suspending classes? Well, for a day of training, right? Apparently with a union license. The content should be tied to educational priorities," Lafuente said.
Organizers of the event said the strippers were not part of the event's official program and the contact happened without the consent of the organizers.
Biologists detail four new deep-sea 'killer sponges'
Pistorius testifies he didn't consciously pull trigger when he shot girlfriend