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Thomas Lentz, Secretary General of the Federation of Social Sector Actors (Fedas), said in conversation with RTL Radio that the Caritas scandal has heightened awareness across the social sector, leading to stricter state controls, a redistribution of donations towards smaller organisations, and a renewed push for harmonised agreements and stronger advocacy.
In the wake of the Caritas scandal, Fedas, which brings together some 200 organisations, has focused on drawing lessons and strengthening resilience to move the sector forward. As an example, Fedas will launch a new training session on cybercrime in October, aimed not only at association leaders but explicitly open to everyone, according to Lenz.
Donations being redistributed
According to Lenz, Fedas recently conducted an internal survey to examine whether some of its members have been financially affected by the Caritas affair. The Red Cross had already reported a 20% drop in donations earlier this year.
While Fedas' survey was not representative, it did show signs of redistribution: donors are still present and willing to give, but funds are increasingly directed towards smaller organisations instead of larger players, Lentz explained.
Tighter inspections
Another change observed since the Caritas case is a marked increase in ministry inspections. According to Lenz, scrutiny in itself is not unwelcome if it serves its purpose, but the current approach is disproportionate. Where previously ten invoices might have required verification, now as many as one hundred must be checked, which does little to solve underlying problems while adding considerable administrative workload, he stated.
Lenz explained that Fedas has raised the issue in a letter to the relevant ministries just before the summer and expects a response later this month.
Major project: harmonising agreements
Fedas has also embarked on major structural work. Having recently signed a protocol of understanding with the government, the next step is implementation, with harmonisation as a priority, Lenz explained.
Some organisations currently hold as many as 90 separate agreements with different ministries, each with its own reporting models and expense rules. Lenz stated that Fedas is aiming to streamline this into just one or two financing models and two or three types of agreements, which would both improve transparency and reduce administrative burden.
Taking over advocacy role
Fedas is also stepping into the advocacy role long played by Caritas. The organisation has set up its own governance structure and an independent body to ensure its "social advocacy" remains credible and autonomous.
Lenz gave the example of an open letter recently issued by this advocacy branch, which draws attention to school dropouts and highlights that one in twelve young people in Luxembourg leave school without completing their studies. Concluding the interview, Lenz argued that this issue needs to receive far more attention.
