Irregular accounts, illegal insurance policyLorentzweiler faces scrutiny over municipal mismanagement

Marc Hoscheid
adapted for RTL Today
Financial irregularities in Lorentzweiler's management account and an unlawfully concluded supplementary insurance policy for municipal staff and eldermen have prompted intervention from the Ministry of Home Affairs.
D'Gemeng zu Luerenzweiler.
© Marc Hoscheid

Tensions are running high in the Lorentzweiler municipal council, following two separate controversies: irregularities in the management account and an additional insurance policy taken out for municipal staff and for the mayoral council itself without proper approval. In both cases, Minister of Home Affairs Léon Gloden has now intervened.

Irregularities in the management account

In mid-2023, the municipal council unanimously refused to approve the management account – an unusual move, as such accounts are normally adopted without opposition. The decision followed indications from the Ministry of Home Affairs that irregularities had been detected during routine checks.

Gloden explained that ministry officials had identified a number of inconsistencies and subsequently met with the mayoral council in late January. He added that the mayoral council has been asked to provide documentation to clarify whether these issues are purely technical irregularities or whether something more serious may be involved.

The municipal treasurer responsible at the time no longer works for Lorentzweiler and has since moved to a nature protection syndicate. Allegations suggest that he may have lost track of who had paid municipal charges and who had not. As a result, reminder letters were reportedly sent in some cases to residents who had already paid, leading to duplicate payments. These funds were then allegedly used to offset shortfalls from others who had not paid. However, there is no accusation that the former treasurer personally enriched himself.

The current mayor, Marguy Kirsch-Hirtt of the local party Är Leit (“Your people”), as well as opposition representatives from the Christian Social People’s Party (CSV), The Greens (déi gréng), and the Democratic Party (DP), declined to comment in detail, citing the ongoing review by the Ministry of Home Affairs.

Asked why the potential irregularities had not been detected earlier, Gloden stated that the ministry carries out targeted checks each year on selected accounts. He said that the issues came to light during such a review, which also uncovered concerns relating to a Medicis supplementary insurance policy, provided by Foyer.

Illegal supplementary insurance

The Medicis supplementary insurance policy was taken out in 2018 by the previous mayoral council, which was composed, like the current one, solely of representatives from Är Leit. The policy covered municipal staff as well as members of the mayoral council.

According to the opposition, the insurance was never put to a vote in the municipal council. During a review of the 2023 budget, the Ministry of Home Affairs concluded that the arrangement was unlawful.

The Luxemburger Wort was the first to report on the matter at the time. In October, first government adviser Laurent Knauf had already stated in the newspaper that the issue would be settled if the mayoral council repaid the money. However, that has not happened to date. Mayor Kirsch-Hirtt has said that while this position was reported in the media, the municipality had not formally received that instruction from the Ministry of Home Affairs.

Gloden responded that if such formal notification has not yet been issued, it will be, but stressed that once something is deemed illegal, the logical consequence is reimbursement. He described this as a matter of common sense.

Kirsch-Hirtt has indicated that the municipality is, in principle, willing to repay the sums in question. The issue is expected to be raised again at the next municipal council meeting, likely to take place in the second half of March.

By contrast, the matter concerning the former treasurer is unlikely to be debated publicly, given that it is currently under review by the Ministry of Home Affairs.

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