Caritas received €2.5 million from Luxembourg City for social services, and while alderwoman Corinne Cahen is confident in service continuity, alternative providers may be evaluated in September.

Caritas collaborates with the City of Luxembourg, which allocated €2.5 million this year for various services, including streetwork, the social bistro, and supermarkets. In relation to the ongoing embezzlement saga, Luxembourg City alderwoman Corinne Cahen, responsible for social action, assured in an RTL interview that "so far, all reciprocity has been provided."

While the city's financial support is significantly less than the state's contributions, Luxembourg City faces a challenge because the entire sum was budgeted for the year and disbursed in one lump sum at the start of the year, unlike the state’s instalment payments.

In the RTL interview, Corinne Cahen emphasised the importance of ensuring that services continue and that the city can still provide care for those in need. She expressed optimism that Luxembourg City will receive all the services it has paid for and voiced "full confidence" in Christian Billon, the head of Caritas' crisis committee.

However, she did not rule out the possibility that other organisations might temporarily or permanently take over certain services, saying, "We will look at that in September."

Following the revelation of a €61 million embezzlement at Caritas, Prime Minister Luc Frieden announced that not a single euro more would be allocated to the organisation until there is a guarantee that the funds will be used as intended.

Frieden noted that Caritas typically receives around €45 million annually from the state, of which €21 million had already been transferred. However, he clarified that these payments were made in exchange for services already provided.

As the investigation continues, Caritas has established a crisis committee with external advisors.

However, it remains uncertain whether the government considers this sufficient assurance to release the remaining funds.

Currently, Caritas officials have not commented publicly, aside from a press release regarding the crisis committee and Christian Billon’s involvement. Interview requests have been declined, and RTL is still awaiting responses to a list of questions submitted earlier this week.

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