€2.3m MCAST fraud: Education ministry refuses to publish probe
Ministry refuses FOI request, saying releasing report could prejudice ongoing investigations
The Education Ministry has doubled down on its refusal to publish an inquiry report into MCAST’s “substandard” payroll systems, following a €2.3 million payroll fraud scheme allegedly perpetrated by former MCAST manager Francine Farrugia.
A Times of Malta freedom of information request for the report was rejected by the ministry, on the grounds that disclosing the report could prejudice ongoing investigations and proceedings.
Farrugia is facing criminal charges over the alleged fraud.
The ministry announced in January that an undisclosed number of MCAST staff will also face disciplinary proceedings as a result of the administrative inquiry, which was set up by the government after Farrugia was charged.
According to a summary of the unpublished inquiry given by the Education Ministry, the college’s payroll systems were found to be substandard.
Times of Malta has reported how MCAST was warned about the lack of proper payroll controls by the auditor general back in 2019, six years before the funds were allegedly embezzled by Farrugia.
The ministry said in its statement that certain unnamed MCAST officials had failed to give a true picture about the college’s efforts to improve its payroll systems based on the auditor general’s feedback.
Ministry: Changes must be made
In the statement, the ministry said the inquiry had noted that certain aspects related to finance and payroll clearly needed to be improved and must be given due attention.
The systems, structures, composition, roles, and procedures must be reviewed and, where necessary, changed, the ministry said.
As a result of the inquiry, disciplinary proceedings will be initiated against individuals who in some way or another failed in their duties, the ministry said.
The ministry added it will ensure the report’s findings will be implemented.
Alleged multi-million fraud
Farrugia was last year charged with using €2.3 million from the educational institute to buy a property, cars and to go on a €113,000 spending spree at luxury department store Harrods.
Through her work as a manager in the accounting section of MCAST, she had access to salaries and issued duplicate salary payments between September 2023 and May 2025, according to investigators.
She allegedly issued either double salary payments to herself or generated fake payroll entries for other MCAST employees.
Her bank accounts were analysed and showed that she had transferred €422,420 there and €1.9 million into her Revolut account.
She denies the charges.