Caritas is rebuilding trust

Almost two years after more than 61 million euros were siphoned off from Caritas funds in Luxembourg, the organisation continues to grapple with the fallout from this large-scale fraud. The scandal broke in 2024 when it emerged that, over a period of several months, funds had been transferred to accounts both within Luxembourg and abroad. The investigation is currently ongoing, and law enforcement agencies have made a number of arrests in recent months. According to Nathalie Frisch, a member of the fund’s executive committee and board of directors, these developments demonstrate real progress in the work of the public prosecutor’s office and highlight the sophisticated nature of the criminal organisation behind the embezzlement. The foundation remains hopeful that at least some of the stolen funds will ultimately be recovered.

At the same time, the recent arrests have not yet had a direct financial impact on Caritas’s financial position. Frisch explained that, at present, all of the charity’s operational activities remain suspended. The organisation’s priority is to settle its remaining liabilities, gradually repay its creditors and systematically complete its previous projects. Although there are now very few staff members left, volunteers continue to play a vital role in this work, which, according to the management, reflects the importance of the voluntary and social sectors to Luxembourg society.

The greatest damage inflicted on the fund goes far beyond purely financial losses. The incident has led to a critical erosion of trust in the organisation. This is precisely why the further progress of the investigation is of fundamental importance — particularly if it conclusively proves that the fraud was the work of a widespread criminal network rather than an isolated incident. Furthermore, the management expresses its deep regret at the loss of the international structures and partnerships that Caritas Luxembourg had built up over several decades. The collapse of the organisation’s international network has been a serious loss for the entire international aid sector in Luxembourg, as these links can no longer be used to support humanitarian and development programmes abroad.