Caritas Luxembourg rescues key projects after €61 million fraud scandal

Michael Feit has dedicated 28 years to Caritas Luxembourg, where he leads the organisation's international cooperation department. Following the fraud scandal that emerged in the summer of 2024, Feit was tasked with the difficult responsibility of terminating all international projects.

The scandal revealed that €61 million had been embezzled, leaving the organisation in crisis. "When we realised that we wouldn't recover the money in the short term, we initially thought there was nothing more we could do for these people," Feit said, reflecting on the gravity of the situation.

Despite the setback, Caritas managed to make significant progress in recent months, largely thanks to partnerships with other organisations and ministries. The focus shifted to identifying cost-effective ways to save lives. "Every project is important, but the circumstances forced us to prioritise," Feit admitted.

To navigate these tough decisions, Caritas sought external support from its head office in Brussels. "I didn’t want to handle the prioritisation process myself, so we brought in help from Brussels," Feit explained. The head office provided guidance, helping the Luxembourg team compile a clear list of priorities. Efforts then focused on finding new funding sources and partners. Caritas staff went through the list, project by project, and worked to secure alternative financing or support from other organisations, Feit added.

Caritas Luxembourg also managed an international project in Ukraine. / © Private

Many international projects will continue

Feit assured that no one would face starvation due to decisions made in Luxembourg, emphasising that short-term solutions had been secured for all critical situations.

As an example, he highlighted Caritas' winter programme in Ukraine, which includes wood deliveries and reconstruction efforts. Although aid for the current winter season is guaranteed, the future of the programme remains uncertain. Feit noted that a major donor, identified by Caritas Belgium, has enabled the project's continuation for now.

Michael Feit in Torit, South Sudan. / © Private

In South Sudan, Caritas has ensured the continuation of a programme aimed at providing food for children in need. However, Feit acknowledged that no new beneficiaries could be added to the initiative. Former Caritas staff in South Sudan have established a local aid organisation, which now receives financial backing from Caritas Netherlands.

Caritas office in Kosovo transforms into local NGO

The Caritas office in Kosovo has now been fully integrated into a local NGO, according to Feit. This transition includes a new agreement with Luxembourg, enabling the NGO to fund projects in Kosovo using financial support from the Luxembourg state.

Feit expressed hope that Caritas Luxembourg could one day resume its activities. "It's just not possible at the moment," he acknowledged. "But of course, we hope there will be a time when a Luxembourg-based Caritas or a similar organisation can operate internationally again." He added, "That decision isn't in my hands, but I believe the possibilities are there."

Overall, the Ministry of Foreign Affairs signed contracts with five partner organisations.

Children's home in Ukraine. / © Private

Channelling anger into progress

When asked whether he felt anger over the forced closure of Caritas Luxembourg's activities, Feit admitted to using that anger as a driving force to continue helping people.

"I've been with Caritas for 28 years. I helped build this structure with my colleague, and now it's collapsing like a house of cards," he said. "That is, of course, deeply frustrating and saddening. But we've turned this anger into action, working to assist as many people as possible."

Feit remains committed to his work, stating that he intends to stay with Caritas for as long as possible. He also pledged never to give up on international cooperation, even if it means continuing as a volunteer in the future.

Direct aid in the aftermath of the earthquake in Turkey. / © Private

As the head of Caritas' international aid department, Feit faced the difficult task of informing staff worldwide that funding from Luxembourg would no longer be available. Despite the devastating news, he shared that many staff members expressed gratitude for the support they had received over the years, which he described as another source of motivation to keep helping others.

Due to the ongoing investigation into the fraud scandal, Feit declined to comment further on the matter.