Caritas scandal: NGOs’ fight for trust

"Surprised", "enormous shock", the superlatives are not lacking when we ask professionals in the sector about the scandal that has hit Caritas. Revelation after revelation of the massive fraud that saw 61 million euros evaporate in the form of loans and money transfers. We asked ourselves whether something like this could happen in another organisation, and whether the control systems needed to be reviewed. Politicians have already taken up the issue, notably Franz Fayot (LSAP), who has called for tighter controls. He was Minister for the Economy and Cooperation during the last legislature. At the same time, the recent law of 7 August 2023 on non-profit organisations has strengthened controls. Gone are the days of simple cash auditors, and organisations of a certain size and above must now call on the services of approved company auditors. This is a necessary but more costly additional safeguard. It's a balancing act for a sector that must, on the one hand, justify what is done with donations, whether private or public, while at the same time operating as rationally as possible.

"Internally, we were surprised by the news and especially by the amount embezzled. I think this will reinforce our interest in justifying the use of funds raised in our magazines and social networks, where we show our actions in the field", explains Émilie Bertoni, coordinator of the fundraising department at SOS Faim. The NGO, which operates on the basis of a framework agreement with the Ministry of Foreign Affairs, receives 80% of the funds allocated by the Ministry if it can meet 20% of its operating costs from its own funds, mainly from private donations. In 2023, this will amount to €650,000 out of a budget of €4 million. This is a far cry from the sums raised by a larger organisation like Caritas, which partly subcontracts the social services provided by the Luxembourg government.