Education Minister tasks ex-judge Antonio Mizzi to lead inquiry into MCAST fraud case

Education Minister Clifton Grima has appointed retired judge Antonio Mizzi to head an inquiry into the case of a senior employee at MCAST charged with fraud.

Grima announced the inquiry on Saturday, two days after college employee, Francine Farrugia was charged with fraud and misappropriation of almost €2.4 million.

The administrative inquiry will be carried out in terms of the Inquiries Act and is independent from the external audit that MCAST has asked for.

Apart from Mizzi, the minister also appointed retired permanent secretary Nancy Caruana and auditor Maria Micallef on the inquiry board. The board has been given six weeks to conclude its investigation.

Retired Judge Antonio Mizzi

Grima’s decision comes after the spotlight was cast on MCAST’s inability to detect the fraud, which had been going on for two years. Farrugia, who worked as a manager in the college’s salaries department issued double payments to herself between 2023 and 2025.

The inquiry has been given a wide remit to probe the school’s payroll processes and establish administrative, civil and criminal responsibilities as applicable. The inquiry is tasked with investigating the existence or otherwise of any link between the processes, procedures and decisions taken by MCAST officials and the case of fraud and misappropriation of public funds. The board will also determine whether the current system used by MCAST has automatic systems to detect suspicious activity.

In the terms of reference that were published on Saturday, the minister asked the board to draw up recommendations and provide guidance as to their publication once the inquiry is over.

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The minister's letter of appointment to the inquiry board members, including the terms of reference can be viewed below:

Fraud charges

Francine Farrugia was a Nationalist Party local councillor in Siġġiewi and a general election candidate. She resigned from the council and all PN posts on the day of her arraignment.

The police investigation kicked off in June after a tip off flagged discrepancies in the institution’s payroll system. MCAST was unaware of the wrongdoing until it was informed by the police in July when investigators stopped a payment of €122,000 from being made to Farrugia’s account.

Financial Crime Investigations Unit officers revealed in court that Farrugia transferred more than €1.9 million directly into her personal Revolut account. Other transfers, including one of €200,000, were made to a notary.

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She was arrested at her MCAST office last Wednesday. During the search of her residence, officers discovered large quantities of luxury goods, including designer handbags, shoes, clothing, and other high-end fashion items. Court testimony also indicated that she had spent over €113,000 at Harrods. Property contracts and vehicle purchases were also flagged, allegedly made during the same period.

While Farrugia cooperated with police logistically, she opted not to answer questions during her interrogation. In court, she appeared visibly nervous and uneasy, at times requesting to sit down. She was denied bail and remanded in custody.

The prosecution, led by the Attorney General’s office requested a freezing order on Farrugia’s bank accounts and assets. The court upheld the request due to the risk of dissipation of funds.

The magistrate denied the defence’s request for a ban on the publication of Farrugia’s name. The court also turned down a request by MCAST, to ban the name of the institution.

Meanwhile, on Saturday, Times of Malta reported that MCAST’s auditor, PKF Malta, had not yet signed off on the 2023 accounts pending more information from the school. However, sources close to the school told MaltaToday that the auditors had detected no fraud and the only pending matter was information about the board of governors.

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