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On Tuesday 23 July 2024, Caritas Luxembourg issued a statement in relation to an individual being indicted as part of an embezzlement investigation.
The investigation had been opened after Caritas' General Management filed a complaint in relation to the misappropriation of funds. Following the indictment of an individual in the context of this investigation, Caritas Luxembourg said it was actively seeking solutions to ensure that its work can continue.
Three priorities are on the agenda: continuing to reassure its staff, understanding the shortcomings that made the misappropriation of funds possible and quickly providing for the needs of the association.
Caritas Luxembourg noted that, following the announcement on Friday 19 July 2024 that it had filed a complaint for the misappropriation of an estimated €61 million, it has received many messages of solidarity and support from institutions, private companies and individuals. The not-for-profit organisation, which is "calmly continuing to do its utmost to pursue its goal of supporting the most disadvantaged people in society", is now seeking solutions to ensure that its activities can continue. A list of priorities has been drawn up, the first of which concerns Caritas Luxembourg employees.
Members of the Board of Directors and General Management spoke on Monday morning in front of 310 of the non-profit's nearly 500 employees (in Luxembourg and beyond). "We would like to reassure our staff, who are deeply shaken by these recent announcements. We have set up counselling sessions for members of staff who wish to receive them during this period. Caritas Internationalis and Caritas Europa have also offered us their support in this regard," announced CEO Marc Crochet.
From this week, Caritas Luxembourg will count on the support of an auditing company that has volunteered to check financial procedures and to identify and change any technical and/or human shortcomings. These findings are expected to shed light on how a misappropriation of funds of this scale, and over a period of nearly six months, could have been possible. The financial losses include transfers from Caritas Luxembourg accounts and reserves, as well as credit lines that were opened thereby diverting funds that the organisation never actually had at its disposal.
Discussions have also been opened with banks and the Luxembourg government. The aim is to negotiate with the banks in order to meet Caritas Luxembourg's financial needs in the short term, pending more comprehensive solutions. The non-profit added that the government, which has strongly condemned the misappropriation of the funds, is trying to identify solutions to ensure the continuity of activities on behalf of the most disadvantaged people in Luxembourg.
"As an investigation is underway, we have to respect the confidentiality of the investigation, but we are cooperating fully with the judicial authorities to ensure that the investigations can continue as smoothly as possible and we note that a person has been indicted. We must, however, now focus on continuing our work in the field," explained Marc Crochet.
In the short term, the activities carried out by Caritas Luxembourg will continue, the non-profit confirmed.