As the Luxembourg government creates a new non-profit to take over Caritas' operations amid an embezzlement scandal, opposition parties demand a judicial investigation and the church confirms it will step back from involvement in Caritas Luxembourg.

Half a dozen parliamentary commissions on Monday convened to update MPs about the ongoing Caritas embezzlement case. Speaking to RTL reporters later in the day, Prime Minister Luc Frieden explained that following the decision to replace the Caritas Foundation and Caritas Accueil et Solidarité by a new non-profit organisation named 'HUT – Hëllef um Terrain' (Help on the Ground), the government will sign a new convention with said entity.

Frieden underlined that this will ensure that all affected nurseries, drop-in centres, refugee homes, and homeless shelters can continue operating in October. Similarly, it will guarantee that all jobs related to the convention will be saved, the PM promised.

"If Caritas in the past also carried out activities not tied to conventions with the government, then there is nothing that the government can do", Frieden further emphasised.

Judicial intervention still required, says ADR

Dissatisfaction with the situation was however still palpable among opposition lawmakers, with both the Luxembourg Socialist Workers' Party (LSAP) and The Greens (Déi Gréng) lamenting that Caritas' development activities have been hung out to dry. In conversation with RTL, MP Franz Fayot of the LSAP acknowledged that the entire sector is suffering from the fallout of the Caritas case and that transparency is the only way to ensure trust.

"That is why we ask that the Chamber set up a special commission to tackle the Caritas dossier and the remaining questions and issues", announced Fayot.

MP Dan Hardy of the Alternative Democratic Reform Party (ADR) meanwhile drew attention to the need for judicial intervention in the case: "We wish that the judiciary does its job, because there are many questions to be answered. It mustn't take years for a trial to take place."

Church no longer involved in the future of Caritas Luxembourg

In a written statement, the archbishopric labelled last week's discussion with the Caritas crisis committee as "honest and respectful". Committee members Hengen and Billon on Friday met with cardinal Jean-Claude Hollerich, auxiliary bishop Leo Wagener, and economist Marc Wagener to discuss the situation, which eventually led to the decision that HUT is to take over.

The statement does, however, not reveal if the Caritas Foundation was solely represented by the religious representatives present at the meeting.

The Foundation welcomes that the new organisation allows Caritas to maintain its national operations, but expresses regret over the halt in international development aid. The archbishopric therefore wants to fully comply with HUT's independence and will not be represented within the non-profit, signalling the end of the church's involvement in Caritas Luxembourg.