According to the initial conclusions of this audit, serious dysfunctions were found in particular in the use of public funds by the group.
the group of private nursing homes in Orpea, in turmoil from the release of an investigative book, he made public on Tuesday the first conclusions of an external audit confirming the dysfunctions, in particular in the use of public funds.
The surveys, which cover the period from 2019 to 2021, “lead to identifying the existence of discounts, rebates and rebates granted, even by suppliers of products financed with public funds”, indicate the auditing companies in charge in a waypoint.
In addition, “erroneous job declarations to supervisory authorities” and “non-compliance in the stipulation of fixed-term contracts and in the use of intermediaries, including a former prefect” were found.
Shortcomings reported in a book-investigation
Orpea, present in 23 countries and which manages more than 350 facilities for the dependent elderly in France, had in February commissioned the independent companies Grant Thornton and Alvarez & Marsal to assess the allegations of the survey book The gravediggers by Victor Castanet.
The journalist denounced the mistreatment of residents, the abuse of public funds, social violations and conflicts of interest.
At this stage of their investigations, the two auditing firms, however, believe that they cannot “confirm the existence of a system that determines regular situations of deficiency on the offer of protections or of a system of rationing on catering”, nor the existence of “a system designed to deliberately organize a staff shortage situation in order to optimize the profits of the group”.
Their work continues to publish final conclusions by the end of June.
The government will go to court
Without waiting, the board of directors of Orpea asked the general management to propose, as soon as possible “as soon as possible”, “an ambitious plan for improvement and transformation”.
A government-commissioned report from the General Inspectorates of Finance (IGF) and Social Affairs (Igas), released in early April, had already reported serious dysfunctions and the government had announced it would take legal action.
Orpea also announced in a press release Tuesday that the publication of 2021 annual results and turnover for the first quarter of 2022 will be postponed to 13 May. Following these announcements, the group was cut off on the Paris Stock Exchange. Paris, down 8.27% to 31.60 euros per euro. It has lost 64% of its value since the beginning of the year.
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