Underfire MCAST carrying out full review of internal processes after fraud charges against manager

Updated at 6:45pm with Education Ministry statement

The Malta College of Arts, Science, and Technology (MCAST) has announced it is carrying out a full review of its internal processes and is introducing changes to its payroll system after a senior manager was charged with fraud.

“MCAST is actively following the developments related to this case, including legal processes, including those aimed at the recovery of any public funds involved,” the college said on Friday afternoon.

This comes 24 hours after the school was brought into controversy after criminal proceedings began against an employee, who stands accused of fraud and misappropriation of €2.3 million in public money.

Siġġiewi local councillor Francine Farrugia, who served as a manager within the salaries department at MCAST, was arraigned in court on Thursday, facing multiple charges including fraud, money laundering, misappropriation, and computer misuse. Farrugia who was elected in Siġġiewi on the Nationalist Party ticket has resigned from the council and her posts within the PN.

According to police testimony, Farrugia exploited her access to MCAST’s internal salary system to issue illegal double payments to herself over a two-year period between 2023 and 2025. In total, €2,337,258.80 was allegedly transferred fraudulently. Farrugia used the illicit cash to live a lavish lifestyle that included luxury cars, property and on one occasion a spending spree of more than €100,000 at Harrod's in London.

The investigation reportedly stemmed following information received by the police independently, raising concerns about the adequacy of financial oversight within the institution.

After Farrugia's arraignment, MCAST has come under fire for what appears to have been a lax system of internal checks and balances that had been flagged as far back as 2019 by the Auditor General.

In its statement on Friday, MCAST said that since January 2025, there have been several administrative changes, including updates to departmental responsibilities and internal processes.

These reforms include the introduction of a payroll system with a built-in verification mechanism, integrated with other platforms to strengthen governance, improve transparency, and ensure accountability.

The new payroll system is being introduced in phases over the summer months, a period when student activity is lower and payment volumes are reduced, to minimise disruption.

MCAST said this approach will help ensure a smooth transition.

The college also stated that it has voluntarily commissioned one of Malta’s leading independent audit firms to conduct a comprehensive review of its processes and make recommendations where needed.

Meanwhile, the Education Ministry said that while it respected MCAST’s independence and autonomy, it will be offering the institute the services of the Internal Audit and Investigations Department (IAID) within the same ministry. "Having the powers of the law to do so, the IAID shall conduct an independent investigation and scrutiny," the ministry said in a statement issued 30 minutes after MCAST's.

The ministry said it is following the matter, which it described as being of "grave concern", and pledged to leave no stone unturned in seeing that justice is done.

PN calls for independent probe into MCAST auditing failures

The Nationalist Party has urged an independent investigation into alleged auditing failures at MCAST after its former councillor was charged with defrauding the college of €2.3 million.

“The government has an obligation to ensure that abuse is tackled and that systems are in place to prevent it from happening,” the PN said.

The party said that the investigation should also answer whether there were similar cases and whether there were other shortcomings in the management of MCAST funds.

“This is even more pressing given that the Auditor General has, since at least 2019, been warning that there are shortcomings in the financial management of MCAST,” the party said.

READ ALSO | Opposition MP Darren Carabott talks of “anger” and “betrayal” after criminal charges against former PN councillor

ADPD calls for resignations

Meanwhile, ADPD-The Green Party has called for the immediate resignation of Education Minister Clifton Grima and MCAST’s board of governors, accusing them of ignoring repeated Auditor General warnings about payroll shortcomings.

Chairperson Sandra Gauci said the lack of action showed a failure of leadership and responsibility in safeguarding public funds.

She argued that such negligence has paved the way for abuse and eroded public trust in the institution.

The party, separately, also called on the Auditor General to investigate internal financial controls at MCAST.