Former refugee welfare agency CEO guilty of embezzling public funds

A former chief executive of the Agency for the Welfare of Asylum Seekers (AWAS) was yesterday given a two-year prison sentence, suspended for three years, after being found guilty of embezzling public funds related to the Agency.

Joseph Michael Baldacchino, 61, who served as the Agency’s CEO from 2016 to 2018, faces a series of charges including embezzlement and misconduct. This followed an investigation by the Financial Investigation Directorate within the Department of Internal Audit and Investigation, which concluded that he used agency funds to purchase products for himself and even used the agency’s employees to work specifically for him, including during official working hours. He was found guilty only of the first charge: embezzlement.

In its decision, the Court, chaired by Judge Rachel Montebello, first analyzed the refund requested by Baldacchino for the 38.75 euro meal he purchased at a Ta’ Xbiex restaurant; According to Baldacchino, this dinner was a ‘Compensation Dinner’ given to a female coordinator in 2014. According to him, it is an agency that has saved the agency ‘thousands of euros’ and is ‘outstanding at its job’. Baldacchino also claimed that he gave him a €100 voucher funded by the agency.

However, while testifying, the coordinator denied attending the lunch in question.

Baldacchino later ‘radically’ changed his version of events when testifying before the Court. He claimed that he actually had lunch with the United Nations High Commissioner for Refugees.

He stated that although he was not authorized by the Permanent Secretary to use agency funds for meals with persons other than agency employees, and although he was expressly instructed not to organize lunches with others at agency expense, he nevertheless defied such instructions other than agency employees. the fact that he disagrees with them.

Claiming that he presented the lunch bill in small cash to be refunded, he said he had lunch with the coordinator instead.

The court also heard how a man employed by the agency as a cleaner at the Hal Far open center at a wage of 4 euros per hour did work on Baldacchino’s boat even during working hours.

The cleaner testified that in June 2017, he was picked up from the tent village by Baldacchino’s son for three days and taken to the Kalkara garage where the defendant’s boat was stored. He spent approximately 26 hours in this garage cleaning Baldacchino’s boat.

Although Baldacchino claimed that he entrusted his son with 120 euros to pay the cleaner, his son stated that he did not receive a single penny from the Baldacchino family for his work.

The documents and evidence led to the conclusion that the cleaner would eventually be paid by the Agency for the cleaning work and that checks made for this purpose would be signed by Baldacchino; The court argued that Baldacchino could not possibly have been unaware that the relevant payments had been sent. Included were sums for work done to the cleaner on his own boat.

Another incident that the court considered was related to Baldacchino’s request that one of the two shower trays purchased by the Agency be taken to his home in Birkirkara.

Upon this request, the tray was taken to Baldacchino’s house in a car driven by the defendant as the CEO of the Agency.

Shortly thereafter, the defendant told Agency employees that he could not find anyone who could install the shower stall, and Senior Technical Officer Brian Zammit offered to do the installation himself along with Agency employees.

To this end, Zammit, along with two other agency employees, installed the shower stall outside working hours on Saturday. Although the agency employees refused to pay, Baldacchino stated that he gave them a bottle of whiskey as a sign of gratitude.

Accordingly, the Court condemned Baldacchino’s conduct and noted that, considering the role he was entrusted with ensuring that the agency’s property was used for the agency’s benefit, he instead used the property for his own gain.

Zammit also testified that Baldacchino instructed him on several occasions to purchase a pump, paint and stainless steel pipes. The purchase of the pumps and dyes was made through checks issued by the Agency, and the stainless steel pipe was delivered directly to Baldacchino’s home.

In reaching its decision, the Court took into account Baldacchino’s uncontrolled criminal record and the fact that the value of the objects and funds in question was not particularly significant.

But he also noted that it cannot be ignored that Baldacchino abused his position as CEO of the Agency by systematically using agency employees and funds for his own personal gain. It was stated that after his appointment, Baldacchino decided that the Agency would be managed not only in line with its legal objectives, but also to meet its own needs. The court condemned this behavior, stating that the defendant violated the trust placed in him to manage public funds. Although the Chief Executive appreciates the strenuous nature of his role, such pressure can never justify the defendant’s conduct.

In addition to the suspended prison sentence, Baldacchino was also ordered to return the sum of €602 as compensation for losses suffered by the agency as a result of his conduct.