What lies ahead for Caritas and its staff following the scandal
Source: Editpress/Fabrizio Pizzolante для L'Essentiel
How can 61 million euros be stolen from an organization like Caritas? Are there rules and precautions? "An auditing firm could detect fraud as part of a mandatory audit of the fund's accounts," explains a local firm. - The problem is mainly related to the management of Caritas and the organization of internal controls. Documents are not sent to the accountant or auditor every day.
A representative of the auditing firm pointed out that there should be limits (e.g., 5,000 or 10,000 euros) on transfers that require double or triple signatures (e.g., paying manager and operations manager). "If 20,000 euros disappears under the mattress, it won't be noticed," he said. - But transfers of 200,000 to 250,000 euros cannot go unnoticed." The spokesman added that in 2024 it is unacceptable to have one person authorized for large transactions, given the internal possibilities of fraud and phishing.
According to the law of August 7, 2023, foundations in Luxembourg must keep double-entry accounts, which allow future transactions and debts to be recorded. The annual accounts must be approved by the board of directors within six months of the end of the financial year and submitted to the commercial register together with an audit report. The audit is carried out by an approved auditor, who is not liable for fraud but must report any doubts to the board of directors.
According to Prime Minister Luc Frieden, the government will stop funding Caritas until the situation is normalized. The OGBL union immediately expressed concern for the future of the foundation's 500 employees, saying they should not become victims of a financial scandal. The union demands that all jobs be saved.
OGBL also stressed that "Caritas employees should not be left in uncertainty. Securing their future and caring for those they help must remain a priority". The union called for a meeting with the Prime Minister and the boards of the associations involved and invited the workers to a meeting on Friday at 13:00 in Ashe.
