THE Archbishop of Luxembourg, Cardinal Jean-Claude Hollerich, has expressed “profound indignation” over the theft of 61 million euros in fraudulent bank loans and transfers from Caritas Luxembourg, one of the country’s largest charities.
“This embezzlement affects a Catholic association aimed at helping the destitute in the Grand Duchy and elsewhere,” a statement from the archdiocese said.
“Maximum support should now be given to the legal authorities in shedding full light on this affair and putting in place all necessary good governance mechanisms.”
The statement was published as Luxembourg police investigated the “CEO scam”, which prosecutors said had involved bypassing authorisation-procedures to procure payment of fake invoices.
It said that Cardinal Hollerich, who represents Europe on the Pope’s advisory council, had been informed of measures to “regain the confidence of state authorities and donors”, and had instructed a crisis committee to “bring together all prerequisites necessary for renewed trust”.
Last month, media reported that Caritas had filed a criminal complaint about the missing funds, said to have been diverted into bank accounts in Spain by a female member of staff.
The Roman Catholic charity, which supports victims of homelessness and trafficking, as well as migrants and refugees, said that it was providing counselling to its “deeply shaken” employees and volunteers, and had received “countless messages of solidarity and support from institutions, private companies, and individuals”.
Luxembourg’s minister for foreign affairs and foreign trade, Xavier Bettel, branded the embezzlement “sickening”, and warned that it would impact “the poorest people”.
The country’s prime minister, Luc Frieden, said that the charity had already obtained almost half the 45 million euros in government funding expected in 2024. He added that he would demand the return of money “not used for its intended purpose” and provide no further state assistance.
In a communique, Caritas Internationalis, which coordinates 162 member-agencies worldwide, said that it had been “in close contact” with offers of support, adding that Caritas Luxembourg was required by statute to “meet minimum standards of financial viability, accountability, and compliance with professional standards and ethical codes of conduct”.
The news of the embezzlement broke amid preparations for a one-day visit to Luxembourg by the Pope on 26 September.