An investigation has been launched into allegations of corruption and influence peddling involving the municipality, Mayor Guy Altmeisch, and his former partner from the real estate company BA Promotion. BA Promotion is also the developer of VOI, the company that purchased the land at the centre of the case.
The matter concerns a plot on Avenue du Parc des Sports and a long-delayed project planned for it. After 14 years of developments and changes, the project is now set to include 79 student flats. Meanwhile, the developer’s added value has soared dramatically – an increase of approximately 375% in just three years – partly due to changes in the company’s shareholding structure. VOI remains the project owner.
Municipal councillor Gary Diderich from the Left (déi Lénk) stressed after Wednesday’s council meeting that the mayor cannot be held responsible for the project’s prolonged timeline nor for the lack of clear conditions in the transaction deed. However, the deed did include a deadline for a penalty.
Diderich added that the agreement for the municipality to repurchase the project from the developer once completed was signed just before the penalty deadline. “The municipality would clearly have had a basis for negotiation at that point,” he said, while acknowledging that the entire municipal executive had approved the project.
At the end of last year, when the project was discussed at the municipal council, the Green Party (déi Gréng) raised concerns about the developer’s high added value. “I think it’s a confusing case,” said Green Party spokesperson Laura Pregno. The Greens ultimately voted against the project, feeling that certain aspects warranted criticism.
Conversely, Christian Social People’s Party (CSV) alderman Tom Ulveling saw nothing unusual in the file. He compared it to other local projects, such as the music school or the Gravity Tower. “That’s why I don’t really understand the fuss. There’s nothing new here – unless there are facts I’m unaware of. But if this is all, I don’t see the problem,” he said.
The Democratic Party (DP) reviewed the file on Tuesday evening. “In this case, I really don’t see what the problem is. I find the public prosecutor’s approach relatively harsh,” criticised François Meisch.
Mayor Guy Altmeisch stated that the municipality is the primary subject of the corruption allegations, but since it has no legal personality, responsibility falls on him. “I have not yet been heard, and I look forward to providing details to the investigator,” said the Luxembourg Socialist Workers’ Party (LSAP) mayor, expressing confidence that he will clarify the matter and prove his innocence. So far, only the municipal secretary and the engineer involved have been interviewed.
The mayor suspects that the Ministry of Housing, which co-funds student housing projects, may have raised concerns about the high land value share and alerted the public prosecutor. However, according to him, the situation has evolved over the years and improved thanks to the new project.
