The Malta Court of Criminal Appeal has upheld a 39-month prison sentence for a government employee who embezzled more than €18,000 from a private construction project by forging a contractor's cheques, closing the door on an appeal that attempted to downplay a criminal history spanning nearly three decades.
Joseph Borda, who served as both project manager and health and safety officer for a three-storey residential development on Triq Rokku Buhagiar in Qrendi, exploited his intermediary position between property owners and the site contractor to systematically divert funds into his own accounts. The appellate ruling, delivered today by Madam Justice Consuelo Scerri Herrera, reaffirms the original January 2024 conviction and adds a perpetual general interdiction, effectively barring Borda from certain civil rights for life.
Why This Matters
• Accountability for public officers: The case reinforces that Malta's judiciary will not tolerate abuse of position by civil servants, with aggravated sentencing applied when public trust is violated.
• Financial recovery completed: All €18,307 was repaid by Borda, though only after police proceedings began—a detail the court cited as evidence the repayment was not voluntary restitution.
• Precedent for construction fraud: Homeowners and contractors now have a clearer legal benchmark for prosecuting intermediaries who misappropriate project funds.
The Mechanics of the Fraud
Borda's role required him to collect payments from the Borg family, the property owners, and transfer them to Anthony Persiano, the contractor executing the build. Instead, Borda pocketed six cheques totaling €18,307—including €7,258 in VAT—by forging Persiano's signature and making them payable to himself. A court-appointed handwriting expert concluded that both the script and signatures on cheques worth €8,980 matched Borda's writing, not Persiano's.
The scheme unraveled when both Persiano and the Borg family independently filed police reports after discovering the contractor had never received the funds. Bank records traced the full sum directly to Borda's accounts, and forensic analysis of the chequebook—taken without Persiano's knowledge—sealed the case.
Charges brought by Malta Police included misappropriation, fraud, and forgery, all aggravated by Borda's status as a public officer at the time. Under Maltese law, crimes committed "by reason of one's profession, trade, business, management, office, or service" carry enhanced penalties, with misappropriation alone punishable by seven months to two years. The aggravated nature of Borda's offences pushed the sentence well beyond that baseline.
A Pattern of Dishonesty
The appellate court gave particular weight to Borda's criminal record, which contradicted his defense's claim of an unblemished history. Records show convictions for fraud in 1998 and theft in 2007, plus documented shortcomings tied to his work as a project supervisor in 2004. Justice Scerri Herrera noted that the repeat offender status justified the lengthy custodial term, especially given Borda's refusal to admit guilt even after repaying the stolen funds.
Maltese courts typically apply a reformative theory of punishment, aiming to rehabilitate offenders and reduce recidivism. But in cases involving serial dishonesty and abuse of public office, the judiciary has consistently leaned toward deterrence. The perpetual general interdiction imposed alongside the prison term means Borda will permanently lose certain civil rights, including the ability to hold public office or serve as a guardian or trustee.
What This Means for Residents
For homeowners commissioning construction projects in Malta, the Borda case offers a stark reminder to verify payment trails independently. Relying solely on an intermediary—even one with official credentials—can expose you to fraud. Best practices include:
• Requiring contractors to confirm receipt of all payments in writing.
• Using bank transfers rather than cheques, which are easier to trace and harder to forge.
• Conducting periodic audits of project accounts if a third party manages disbursements.
For contractors, the case underscores the importance of immediately reporting payment discrepancies to both clients and police. Persiano's prompt action, combined with the Borg family's complaint, enabled forensic accountants to reconstruct the paper trail before evidence could be destroyed.
Financial Recovery and Court Costs
While Borda eventually repaid the full €18,307, the appellate court dismissed arguments that restitution should mitigate his sentence. The judgment emphasized that repayment occurred only after criminal proceedings commenced, making it a defensive maneuver rather than genuine remorse. In addition to the prison term, Borda was ordered to pay €1,172 in expert costs to cover the handwriting analysis and forensic accounting that secured his conviction.
Malta's Prevention of Money Laundering Act allows for fines up to €2.5M and imprisonment up to 18 years for financial crimes involving public officials, though prosecutors in this case pursued charges under the Criminal Code's provisions for misappropriation and forgery. The sentencing reflects the mid-range of typical penalties: a 2024 case involving a Valletta resident who forged a single €1,197 cheque resulted in a 13-month term, while a customs fraud ring involving six officers and €15.9M in losses led to money laundering charges still pending trial.
Judicial Precedent and Public Trust
The Malta Court of Magistrates initially convicted Borda in January 2024, and today's appellate confirmation signals that higher courts will not second-guess lower tribunals when forensic evidence is overwhelming. Justice Scerri Herrera's written judgment praised the thoroughness of the original investigation, particularly the handwriting expert's testimony and the meticulous bank record analysis.
Fraud remains a persistent issue in Malta, accounting for 14.4% of all reported crimes in 2024 according to national statistics, down slightly from 17% in 2023. Within that category, cases involving public officers draw heightened scrutiny: the Public Service Commission's 2016 annual report documented 38 criminal proceedings against civil servants, with recommended penalties ranging from dismissal to salary forfeiture. The Economic Crimes Squad continues to investigate white-collar offenses, including corruption, embezzlement, and serious fraud, often in coordination with the European Public Prosecutor's Office on cross-border cases.
For the construction industry specifically, the Borda verdict provides a legal benchmark for prosecuting intermediary fraud. Property developers and contractors can now cite the case when negotiating contract terms that specify direct payment arrangements and require independent verification of fund transfers.
The three-storey development on Triq Rokku Buhagiar has since been completed, with the Borg family and Persiano moving forward after the financial losses were recovered. But the reputational damage to Malta's public service remains a concern for transparency advocates, who argue that stronger vetting and oversight mechanisms are needed to prevent civil servants from exploiting their positions in private-sector dealings.
