Orpea will have to get its hands on the wallet and take out big bills.
A spokesperson for the National Solidarity Fund for Autonomy (CNSA) gave Orpea formal notice on July 29 for embezzlement.
This organization which manages the funds dedicated to dependency, estimates that the private group of retirement homes must repay 55.8 million euros.
If Orpea assured that it would reimburse “the sums whose allocation was inadequate”, the group however evokes “differences of appreciation” on the sums concerned.
According to Le Monde, the group says it is ready to reimburse 5.7 million euros, an amount which corresponds to discounts granted by suppliers for the purchase of products intended for the elderly, financed by public grants.
Orpea does not intend to reimburse the rest
On the other hand, Orpea refuses to reimburse 30.1 million euros claimed for wages, according to the daily.
The group used these public funds to pay carers, while the company should have financed their salaries with its own funds.
“The debate mainly concerns life auxiliaries acting as caregivers, a practice used by the entire sector to make up for the structural shortages of personnel”, specified Orpea.
The salaries of nursing assistants are partly covered by public grants.
The group also refuses to reimburse 19.6 million euros corresponding to the amount of two taxes, paid with public funds, indicates
Orpea ensures that it will provide “answers” to the CNSA within the “time limit” of one month to defend its position.
"The situation is unprecedented, the CNSA will do everything to recover the amounts due by relying on its current legal capacities", commented to AFP the spokesperson for the organization.
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Misappropriation of public funds