Chamber of Deputies (Luxembourg's parliament); Credit: Jazmin Campbell/Chronicle.lu

On Wednesday 2 October 2024, the Luxembourg government announced it would grant a loan of €4 to €5 million to Caritas.

Six parliamentary committees met at the Chamber of Deputies on Wednesday to discuss the consequences of the "Caritas affair" (i.e. the embezzlement of €61 million). Among the questions directed at the government - represented by Prime Minister Luc Frieden, Foreign Minister Xavier Bettel, Finance Minister Gilles Roth, Education Minister Claude Meisch and Family Minister Max Hahn - was what the future held for the non-profit organisation and its employees.

The Chamber of Deputies recalled in a statement that more than 300 people have signed employment contracts with the new HUT - Hëllef um Terrain ("Help on the Ground") entity, which has taken over Caritas' activities in the social sector in Luxembourg. Prime Minister Frieden welcomed this progress but acknowledged that questions remain that may only be answered in court. He also defended the decision to break away from Caritas and create a new entity.

Opposition MPs were critical of how the new contracts with HUT were signed and argued that Caritas employees, at risk of losing their salaries, did not have much choice in the matter.

The government went on to announce the approval of a state loan of €4 to €5 million to Caritas. Minister Roth explained that this was aimed at helping equip Caritas with the resources needed to establish its accounts, to possibly generate income through the sale of buildings or to manage the money which may still reappear. The Prime Minister noted that this transitional loan, secured by mortgages on a debt-free building and by land, is not without risk either.

In response to questions about Caritas employees not taken on by HUT, the Prime Minister replied that the social sector in general is still hiring. He added that the government would do "everything possible" to ensure that the two people from Caritas who did not sign their new employment contract with HUT would find another job.