The private group of residences for the elderly Orpea, accused of embezzlement of public funds, has been sentenced to reimburse the State 55.8 million euros, as we learned this Friday. The National Solidarity Fund for Autonomy (CNSA) notified Orpea on July 29, said a spokesman for this organization that manages funds dedicated to the agency, confirming information from Le Monde.
Orpea assured in a press release published last week that it will reimburse “the amounts whose allocation was inadequate.”
The group, however, evokes “differences in appreciation” on the sums in question. He intends to give “answers” to the CNSA within a “term” of one month to defend his position. According to Le Monde, the group says it is willing to reimburse 5.7 million euros, an amount that corresponds to discounts granted by suppliers for the purchase of products for the elderly, financed with public subsidies.
Orpea refuses to reimburse 30.1 million euros
On the other hand, Orpea refuses to reimburse 30.1 million euros claimed for wages, according to the newspaper. The group used these public funds to pay the caregivers, while the company should have financed their salaries with its own funds.
“The debate is mainly about life assistants acting as caregivers, a practice used by the entire sector to compensate for structural staff shortages,” Orpea said in a statement. The salaries of nursing assistants are covered in part by public subsidies. The group also refuses to reimburse 19.6 million euros corresponding to the amount of two taxes, paid with public funds, indicates Le Monde.
“The situation is unprecedented, the CNSA will do everything possible to recover the amounts owed, relying on its current legal capacities,” said the organization’s spokesman.
Orpea in crisis since January
Orpea, present in 23 countries and which manages more than 350 establishments for dependent elderly people in France, has been in chaos since the publication in January of an investigative book, “Les Fossoyeurs”, by journalist Victor Castanet, which denounces its practice .
Justice opened a preliminary investigation in April for institutional mistreatment and financial crimes, following a government report. The group, whose stock has fallen sharply on the Paris Stock Exchange since the book’s publication, has fired its management and vowed to review its practices. He appointed a new managing director and revamped his board of directors to convince his shareholders, and the general public, that he had learned the lessons from the matter.
Source: BFM TV
