A forensic audit has revealed how former MCAST finance manager Francine Farrugia allegedly exploited the college's payroll system to divert over €2.3 million in public funds into her own accounts.

Testifying in court, Dakar Software Systems CEO David Schranz, whose company provides the college's payroll platform, described the manipulation techniques allegedly used by Farrugia between September 2023 and July 2025.

Schranz explained that Farrugia, who denies charges of embezzlement, misappropriation, fraud, and money laundering, allegedly inserted falsified employee entries and linked them to her personal IBAN numbers before payroll was processed. Once the bank file was generated, those entries were deleted, effectively erasing the trace from standard payroll reports.

"There were illegal transactions every month except for February and June 2025," Schranz told the court, explaining that the discrepancies only surfaced through a technical audit, not the regular payroll analysis, which he said merely captures a snapshot of final transactions.

Farrugia joined MCAST in December 2019 and later became a senior manager in the Payroll Department, where she handled all salary-related processes.

In one instance, employees who were not entitled to payments were temporarily added to the payroll system, with their IBANs replaced by Farrugia's. Once the payments were processed, all entries reverted to normal, leaving no visible record of wrongdoing in the reports sent to the accounts department.

The witness also described other methods, including the reinstatement of previously terminated employees, whose payments were similarly redirected to the accused's accounts.

When asked whether this was the same method used throughout, Schranz replied that while the techniques varied, the result was identical, public funds were channelled to accounts linked to Farrugia.

The case was heard before Magistrate Rachel Montebello.

Attorney General lawyers Michael Muscat and Alessia Schembri, assisted by Inspector Wayne Rodney Borg, are prosecuting. Lawyers Peter Fenech and Amy Zahra are representing the accused, while Lawyers Stefano Filletti and Thea Lynn Cesare are appearing for MCAST, with Filletti also representing the education ministry.