The special parliamentary committee analysing the Caritas scandal faces mounting challenges as key players, including Caritas and consultancy firm PwC, resist cooperation, prompting criticism from MPs across party lines.

In autumn 2024, the Chamber of Deputies established a special parliamentary committee to investigate the events surrounding the Caritas scandal. However, some MPs have now expressed concerns that key parties involved appear reluctant to engage with the committee.

During its latest meeting on Monday, committee members voiced frustration over the lack of progress, citing resistance from several central figures in the case.

The committee is tasked with compiling a report by April, but MP Sven Clement of the Pirate Party acknowledged that meeting this deadline may prove challenging. "When the most important actors refuse to talk, it becomes very difficult to move forward," Clement said.

He referenced a recent letter from Caritas, in which the charity openly questioned the need for the committee. Additionally, consultancy firm PwC has stated it will only engage with MPs under specific conditions–a stance Clement described as "outrageous." The MP argued that it would be in the interest of Luxembourg's "Big Four" to "show some humility" in the wake of a major fraud scandal. "Instead of hiding and pretending the Chamber has no right to seek answers, they should come and explain themselves," he added.

MP Marc Baum of the Left Party (Déi Lénk) emphasised that the committee's purpose is to facilitate dialogue, not conduct an investigation. "We are inviting these actors for an exchange, not an inquisition," Baum said. He stressed that it would be in the best interest of both Caritas and PwC to address the committee's questions openly.

Baum also noted that if they refuse to cooperate, the Chamber of Deputies could escalate the matter by launching a formal inquiry. In such a scenario, the parties involved would be compelled to testify under oath. "The current committee is a more elegant and efficient way to achieve our goals," Baum explained.

Similarly, MP Taina Bofferding of the Luxembourg Socialist Workers' Party (LSAP) criticised Caritas and PwC for their apparent unwillingness to cooperate with the special parliamentary committee. She argued that their actions demonstrate a lack of commitment to transparency and dialogue.

Bofferding specifically took issue with PwC's demand that MPs submit their questions in advance and refrain from asking additional questions during the exchange. She sharply condemned this condition, stating, "No parliament in the world operates this way." The LSAP MP criticised what she described as "the audacity to dictate terms to parliament, the foremost authority in the country."

Bofferding questioned whether Caritas and PwC are genuinely interested in clarifying the situation and fostering transparency. She accused them of "playing for time" and undermining the work of the special committee.

This sentiment is not limited to opposition MPs. Committee President Stéphanie Weydert of the Christian Social People's Party (CSV) also expressed frustration, stating that if Caritas and PwC are unwilling to participate, they should openly declare so. Like MP Marc Baum, Weydert emphasised that the committee's goal is not to conduct an investigation but to facilitate an open exchange with all parties involved.

Caritas, in its letter, accused Weydert of a potential conflict of interest, citing her past work as a lawyer for a firm now linked to the case. On Monday, Weydert clarified that neither the bar association nor the Chamber of Deputies' ethics committee has issued an opinion on the matter to date.

The special committee's next meeting is scheduled for Monday, 20 January.

Further reading:

Caritas challenges legality of parliamentary probe, alleges conflict of interest

Looking back on the €61 million fraud that shook Luxembourg