Ehpad. Orpea scandal: Independent audit firms confirm "dysfunctions".

Orpea is "at fault".

Ehpad. Orpea scandal: Independent audit firms confirm "dysfunctions".

Orpea is "at fault". The final results of an external audit were released by the retirement home giant on Wednesday, amid the chaos following the publication of Victor Castanet's investigative book Les Fossoyeurs. He notably confirmed that he used public funds in "dysfunctions".

Philippe Charrier, chairman and CEO of Orpea, stated that the publication of the findings of the external evaluation mission was part of the "process of total transparency" of Orpea in response to "all allegations against the group", as he was quoted in a press statement. It confirms that certain allegations have not been proven. However, it also confirms the existence of malfunctions and wrongful conduct for which we again apologize to all our stakeholders.

Les cabinets Grant Thornton et Alvarez

Independent audits confirmed that there was a practice to maximize the use of the allocation given by authorities to nursing homes for medical equipment. This was done via invoicing by a service provider "whose reality cannot be verified". The audits found that there were surpluses in the allocated funds, which the accounting treatment may have contributed to the group’s success. Orpea asserts that it took measures to "eliminate the above-mentioned practices, which were still in existence"

Grant Thornton et Alvarez

It also covers "other financial transactions in France and abroad" that "may have had effect or the purpose to unduly favor third parties, in particular employees/or former workers, or companies in which employees/or past employees of the Group could be interested". Orpea assures that the damage suffered is "insignificant at group level" and that "disciplinary procedures have been in progress" as well as "dismissals, layoffs" already taken place.

This report was published as Orpea's headquarters and regional offices were raided Wednesday in an investigation into financial crimes and suspected abuse of residents.