Radio 100,7 has just published new details regarding the embezzlement of more than 61 million euros from Caritas, suggesting discrepancies were noticed as early as February this year.
According to the latest information, weaknesses in the charity's financial management were spotted before the embezzlement came to light. In 2023, Caritas commissioned an independent consultant to review the charity's financial practices with a view to improving them. The consultant duly delivered a list of recommendations, including the implementation of clearer procedures in February this year - mere days after the first amount of funds was diverted to Spain.
In the report that was drawn up at the time, employees also expressed doubts about the financial director's skills and leadership style, according to Radio 100,7.
Between February and July 2024, more than 100 transfers of less than 500,000 euros were made. According to the procedures, these documents had to be signed electronically by two other members of the general management in addition to the financial director. The question remains as to why this embezzlement was not noticed.
The CSSF, Luxembourg's Financial Sector Supervisory Commission, has taken action to analyse the role of the banks from which the financial director obtained credit lines, according to Radio 100,7.
The banks claim to have been targeted by external criminals who pretended to be the general director with a false email address.
Related:
Caritas faces financial crisis amid major embezzlement scandal
Luxembourg government refuses to provide financial relief to Caritas
Person turns themselves in to police in Caritas embezzlement investigation
Caritas Luxembourg appoints crisis committee, enlists support from PwC
'A disgraceful theft from the world's poorest'
