Italian criminal investigation puts Malta’s university licensing process in the spotlight

A criminal investigation into the Università Telematica Pegaso in Naples, Italy, has drawn renewed attention to Malta’s role in the expansion of the higher education group, raising fresh questions about a controversial university licence issued by Maltese authorities earlier this year.

Italian prosecutors in Naples are investigating 40 individuals, including Pegaso founder and former owner Danilo Iervolino, as part of a wide-ranging inquiry examining more than 4,200 enrolments, degree programmes, master’s courses and professional qualifications linked to the university network.

According to Italian media reports, investigators are examining allegations including corruption, false declarations, irregular examination procedures and the recognition of academic credits.

The investigation remains at a preliminary stage, and no formal charges have yet been filed. No Maltese individuals have been named in the investigation so far.

While the focus of the criminal inquiry is in Italy, the developments have revived concerns surrounding Malta’s connection to the Pegaso group through MED.E.A. University, a Malta-based institution that traces its origins to Pegaso International Ltd.

In January, The Shift revealed how the Malta Further and Higher Education Authority (MFHEA) granted university status to MED.E.A. despite an earlier evaluation process that had reportedly recommended refusal.

Documents reviewed by The Shift showed that independent assessors had raised serious concerns about the institution’s readiness to operate as a university. Nevertheless, following a licensing process that stretched over several years, the Authority approved the application, prompting questions about transparency and the basis on which earlier concerns were ultimately set aside.

Those questions have now acquired greater significance as scrutiny of the wider Pegaso network intensifies across Europe.

An investigation published by Italian non-profit newsroom IRPI media has already highlighted concerns about qualifications marketed internationally through entities linked to the Pegaso group, particularly in Spain.

The report focused on specialised master’s programmes promoted to professionals in the security sector and examined whether students were adequately informed about the recognition status of those qualifications within the Spanish education system. According to the investigation, some graduates later encountered difficulties obtaining the academic recognition they believed the programmes would provide.

While the investigations have not yet implicated Malta, they place it at the centre of a network that used the island as a platform for international educational activities.

For more than a decade, Malta has actively promoted itself as a hub for private higher education institutions seeking access to international markets. The country’s licensing framework has attracted operators from across Europe and beyond, offering institutions the opportunity to establish themselves within an EU member state while recruiting students globally.

Education industry insiders told The Shift that the latest Pegaso investigation is already raising broader questions about the effectiveness of Malta’s regulatory framework and whether regulators are adequately equipped to assess increasingly complex international education structures whose activities and marketing extend across multiple jurisdictions.

Critics have long argued that Malta’s regulatory oversight should not be limited to academic standards alone, but should also examine the wider commercial models employed by institutions, the representations made to prospective students, and the nature of relationships between affiliated entities operating in different countries.

The MFHEA has consistently maintained that institutions granted licences in Malta must satisfy established quality assurance standards. However, the Authority has not provided a detailed explanation addressing the apparent discrepancy between the negative conclusions reached during the earlier evaluation of MED.E.A. and the eventual decision to award university status.

The same MFHEA has also granted licences to a number of other international institutions with limited or no established track record, including the American University of Malta, based in Cottonera. The university has consistently failed to meet its projected student targets and remains in breach of key obligations tied to the government concession negotiated under the administration of disgraced former prime minister Joseph Muscat.