Board of inquiry set up to investigate alleged fraud at MCAST
A report into its findings will be delivered to the education minister within six weeks
An independent board has been set up to investigate the procedures in place and decisions taken at MCAST, following recently publicised allegations of fraud and misappropriation of public funds at the college.
The announcement was made Saturday by the education ministry and follows revelations this week that now-suspended MCAST finance manager Francine Farrugia is facing charges of fraud and embezzlement of €2.3 million from MCAST, where she took care of payroll.
The finance manager and former PN councillor until her resignation two days ago is accused of siphoning of money from the college to buy property, cars and to finance a €113,000 spending spree at luxury department store Harrods.
In a statement, the ministry said retired Judge Antonio Mizzi had been appointed to lead the board of inquiry, which would “establish the facts, processes, procedures and systems of MCAST relating to payroll”.
A report into its findings will be delivered to Education Minister Clifton Grima within six weeks, the ministry said.
The board will “identify administrative, civil and/or criminal liabilities where applicable” and “verify whether there was a relationship between the decisions or actions taken by MCAST officials and the case of fraud and misappropriation of public funds”.
The three-person board, which is empowered to recruit experts to assist in its investigation, will also examine MCAST systems and check whether they provide “automatic mechanisms to detect suspicious activity or maladministration”.
The board will be expected to deliver regulatory and administrative recommendations aimed at “strengthening governance and accountability” at the college.
The ministry noted that the autonomy of MCAST would “remain respected” throughout the inquiry, which would be carried out in collaboration with the Internal Audit and Compliance Directorate within the ministry, supported by the Internal Audit and Investigations Department.
Yesterday, MCAST told Times of Malta that Farrugia had been suspended and an "external audit is currently underway", while not providing further details.
Meanwhile, MCAST’s external auditors have yet to sign off on an audit of the public education institution’s 2023 accounts.
Auditors PFK told Times of Malta that they have not completed the audit “pending some issues to be discussed in confidence with MCAST board of directors”.
A 2019 audit by the National Audit Office turned up “various inaccuracies” after a random test of allowances and payments to MCAST employees and noted the college had confirmed its payroll validation system “does not function”.
While MCAST pledged at the time of the audit to have such a system in place “by the first quarter of 2021”, a follow-up audit two years later found the promised system was still in “testing phase”.
ADPD have called on the Auditor General to investigate MCAST’s financial administration, noting the college appears to “lack internal controls over expenditure”.