New media report says potential financial irregularities occurred at Orpea’s Swiss unit -Breaking
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© Reuters. FILE PHOTO- An image of the Orpea logo at the entrance to a French retirement home (EHPAD- Housing Establishment for Dependant Elderly People), Reze, France. Feb 2, 2022. REUTERS/Stephane MahePARIS, (Reuters) – France Info radio claimed Thursday that there were evidence pointing towards possible financial irregularities associated with a Swiss Unit of Orpea. It was a day following the French care home operator that said it had contacted authorities regarding any potential wrongdoing involving this company.
A spokeswoman for Orpea told Reuters that the France Info report linked to information from a larger criminal investigation of the French company scandal and added it was up the judicial authorities determine if unlawful acts were committed.
France Info claimed it has evidence to suggest Orpea’s Swiss unit Kauforg could have inexorably invoiced suppliers for services, such as product performance or development, up until 2020.
France Info reports that Kauforg paid executives high-paying salaries while they were still on Orpea’s French payroll.
France Info quotes Philippe Charrier as Orpea’s chief executive as saying that company sees it as its obligation to investigate every accusation levelled against it.
Charrier stated that France Info had provided several information channels to help detect possible illegal acts.
His comments did not clarify if he was referring to the Swiss unit report or the many accusations against the company made this year.
In January, a book claimed that Orpea’s nursing home had experienced severe care failures. It triggered negative media reporting and led to the government taking legal action against them.
Orpea shares fell more than 70% last year. On Thursday, they lost 1.2% during early trading.
Investigate Europe posted a Wednesday article that examined Orpea’s financial structure. The website stated it involved Luxembourg, and may have lead to financial mischief.
Like the France Info report, the Investigate Europe Report was also built on the facts Orpea provided to authorities in the course of their ongoing investigation.
Orpea declared that internal measures were taken on Thursday to eliminate the people likely to be implicated in the frauds, and to improve the Group’s internal control processes. It did not specify the particular accusation.
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