Internal report exposes lavish spending of CMCM director

Central to the controversy is an internal financial report that has shed light on the compensation system, particularly concerning the director general. Described as "opaque" and "amateurish," the system raises concerns of potential tax fraud.

The report, forwarded to the Ministry of Social Security, includes several annexes, revealing astonishing findings.

€18,000 annual lump sum and numerous allowances

According to details obtained by our colleagues from RTL Radio, the director general receives a base salary along with various allowances for representing the CMCM. Additional benefits such as a supplementary pension and disability pension rights are also part of the package. Notably, the disability pension is structured based on a combination of state career levels: 20% at S1 level and 80% at S2 level. S2 corresponds to the salary of a state secretary.

Moreover, despite an explicit job description that includes external representation duties, Director General Fabio Secci received an annual lump sum of €18,000, equivalent to €1,500 per month, for representation and mileage allowances.

Furthermore, Secci is entitled to additional hourly rates (+€60 during normal work hours) for each allowance claimed, with higher rates during lunchtime (+€120) and evenings (+€180 after 6pm), as well as elevated rates on weekends (€250 on Saturdays, €300 on Sundays) and public holidays (€300).

As a result of this complex system of allowances, the amount the CMCM paid Secci in allowances (€25,500) in 2021 far exceeded the €18,000 he received as a lump sum. Additionally, there are concerns over the broad interpretation of "representation fees," which regularly encompass tasks typically considered part of the director general's regular responsibilities.

€300 for "representation" at a Christmas market

Among the findings, Secci claimed two allowances exceeding €60 each for every meal with a member of the Administrative Board. The CMCM's director general also charged at least €120 each time he briefed the CMCM's Administrative Board about the CMCM's daily operations.

Invoiced activities extend beyond routine meetings, encompassing events such as discussions on the Mutualist Fund's IT system and visits to the construction site of the new CMCM headquarters in Hollerich.

Particularly noteworthy are instances where Secci invoiced for personal engagements, including attendance at the Réiser Päerdsdeeg show jumping event in Roeser, and a Christmas market along the Moselle, totalling over €180 and around €300 respectively. Notably, these amounts were billed a second time for Secci's spouse, who also holds a position within the CMCM directorate.

Joint representations abroad by the couple incurred charges ranging from just under €1,000 to €1,500 each, although the rationale for invoicing as a couple remains unclear.

Furthermore, Secci's involvement in Télévie, ostensibly a charitable commitment, resulted in substantial allowances in the hundreds of euros billed to the CMCM. Secci also charged the CMCM for his attendance at the government's healthcare conference (Gesondheetsdësch).

Half a dozen cars since 2017

But CMCM Director General Fabio Secci's opulent lifestyle isn't limited to hefty pay cheques and allowances—it also extends to a fleet of company cars.

Records show that Secci has owned or leased half a dozen vehicles since 2017, including a Range Rover valued at over €130,000. The CMCM financed this luxurious vehicle, complete with a trailer coupling, and deducted the costs over a period of approximately four and a half years. In 2022 alone, this car consumed over 2,500 litres of fuel at the CMCM's expense. In the months of June, October, and November, the fuel bills were between just under €500 and almost €600. It is worth remembering that this is all in addition to a monthly flat rate of €1,500, inclusive of mileage allowances and representation compensation.

Secci seemingly enjoyed exclusive use of the expensive vehicle, as evidenced by personalised licence plates bearing his initials.

However, in May 2022, the tax administration was informed that all vehicles were designated for pool use primarily by directorate members and solely for professional purposes. Consequently, the CMCM argued that there was no taxable "benefit in kind" for Secci.

The internal finance committee's report characterised the CMCM's compensation system as "amateurish," highlighting the risk of tax fraud. Secci's receipt of double and triple compensation, potentially inadequately taxed, suggests the CMCM's possible involvement in tax-related offences.

When the CMCM case was recently discussed in the relevant parliamentary committee, it was said that the state was limited in what it could do to intervene, as all expenditures had the approval of the administrative board and general assembly. The same administrative board that indulged, alongside Director General Secci, in extravagant outings such as a €6,300 dinner at the Michelin-starred restaurant Fani in late 2021. By comparison, this almost overshadows the comparatively modest €4,500 summer party for staff at the Schéiss restaurant in July 2021.