Cardinal Hollerich demands probe into multimillion-dollar Caritas scandal

CNA Newsroom, Aug 14, 2024 / 12:58 pm (CNA).

Cardinal Jean-Claude Hollerich of Luxembourg has called for a comprehensive investigation into the 61 million euro ($67.2 million) embezzlement scandal at Caritas Luxembourg, one of the country’s largest Catholic charities.

The organization faces a crisis of trust just weeks before a scheduled papal visit.

The cardinal, according to Domradio, expressed “deep indignation” over the misappropriation of funds in a statement released Monday evening.

“It is now the task of the crisis committee to create all the conditions for renewed trust,” Hollerich said, emphasizing the need for transparency and accountability in the wake of the scandal.

The financial irregularities, which came to light in July, involved the alleged theft of 61 million euros (approximately $67.2 million) from Caritas Luxembourg over five months. Investigators suspect a former employee orchestrated more than 100 unauthorized transfers to Spanish bank accounts.

The Caritas scandal has cast a shadow over Pope Francis’ upcoming visit to Luxembourg. The Holy Father is scheduled to briefly stop in the Grand Duchy on Sept. 26 before his trip to Belgium. 

The case has prompted a swift reaction from Luxembourg’s government, which had provided 29 million euros (about $32 million) to Caritas this year before the embezzlement was uncovered. 

Initially suspending all payments, Prime Minister Luc Frieden’s office indicated on Tuesday that funding might resume for certain unaffected Caritas entities “under specific conditions.”

Caritas Luxembourg employs approximately 500 people and has moved to reassure its staff and beneficiaries. The organization has guaranteed that August salaries will be paid and essential services will continue without interruption.

A crisis committee is currently in discussion with Frieden. Their goal is to ensure a “rapid return to stability for employees and beneficiaries” while addressing the systemic issues that allowed the embezzlement to occur.

In response to the crisis, Caritas Luxembourg announced on Aug. 6 a significant restructuring plan. The organization will create two new entities to oversee its national and international activities, set to begin operations in September. This decision aims to restore donor confidence while allowing investigations to move forward unimpeded.