Editorial - The Caritas scandal

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In a country that has to show its credentials to the world's authorities, that prides itself on being at the forefront of the fight against money laundering, where compliance and audit staff are being hired in droves… In the financial sector. A sector where the CSSF keeps a watchful eye and where any dubious fund movements do not pass through the security filters.

In other words, for NGOs, the rules are much more flexible. After all, no one with any malicious intent would work for a charity! The overarching narrative is that the "sharks are in finance, the good people are with the NGOs". At least that's what we would like to think. So the strict rules don't apply everywhere. When you're talking about a local association that relies on volunteers and raises just a few thousand euros from the refreshment stall, it's obviously not possible to set up strict and costly safeguards.

But when you're managing literally millions of euros, and that money comes from Luxembourg taxpayers, a rigorous governance policy is essential. Because it's not Caritas that has lost money, it's us. We the taxpayers who, via the State, entrust money every year to NGOs to subcontract its social services. How many vulnerable people, refugees and homeless people rely on the NGO every month to survive? Without these organisations, the welfare state would collapse. But while the government must be held to account, it would appear that subcontractors are not being held to the same standard.