LSAP proposes new "4-eye principle" law on transactions over 10,000 euros

The opposition party said it had not received any answers to questions sent to the government since the beginning of August, criticising a drop in communication at a press conference on Friday morning.

When asked about RTL information which suggested all Caritas branches affected by the embezzlement would be liquidated and replaced by new entities, MP and lawyer Franz Fayot said there should be no difficulty in doing so. However, there were many unanswered questions regarding the future for Caritas employees, partner organisations, housing and other projects run by the charity. Fayot attributed the ongoing confusion to what he deemed a "legal void" in the charity sector, particularly when tasked with dissolving ASBLs.

Fayot and other MPs including Taina Bofferding and Claire Delcourt said they would find it "obvious" for members of Caritas management and the board of directors to no longer be active within new departments related to the charity. Although they were not directly guilty, they still carry responsibility, Fayot concluded.

Read more: Caritas faces financial crisis amid major embezzlement scandal

Strengthening regulation

On Friday morning, the LSAP presented their proposals to respond to the embezzlement and prevent future financial abuse incidents. They suggest a "4-eye principle" be legally enshrined for transactions over €10,000. Sums over €100,000 would double the number of people to sign off on the transactions, while anything over €500,000 should be run past the board of directors.

This would help to regulate the management of charitable foundations and non-profits which have an agreement with the government, and also restore trust in the charity sector. In addition,the LSAP proposed anti-corruption clauses in state conventions. The Chamber of Deputies could also take a closer look at the conventions in the future.