Orpea, the world's leading provider of care for the elderly, has not escaped the storm that has been stirring it up since the revelations made at the beginning of the year in journalist Victor Castanet’ book Les Fossoyeurs.

Investigate Europe highlighted the dubious financial practices after Castanet made allegations of abuse in Orpea's care homes in France. According to the most recent revelations Luxembourg holding company, Lipany, has accumulated €92 million in assets, especially “shares in numerous Ehpad and clinics managed by Orpea”, in France and in three other European countries, and “carried out dubious financial operations”. The former head of Orpea Italy has been identified as being in charge of the operation.

The holding company, which has several international branches, has never made any profit and has never distributed any dividends. Its activities were described by Investigate Europe as “entirely debt-based”, and “opaque”.

Orpea did not wish to make any official comment, stressing that judicial investigations are underway and that a complaint had been filed for misuse of social assets. But it also adds that internal audits were underway and that several people had been dismissed. Among them was former financial director Sébastien Mesnard, who was, according to Mediapart, very close to Lipany.

An intriguing buying centre in Switzerland

On Thursday, France Info's investigation unit was taking a close look at Kaufrog, the Orpea group's central purchasing unit, based in Switzerland which supplies nearly 400 establishments in France.

The salaries of Kaufrog's executives were a cause for concern, in particular those of three French managers, employees of Orpea France, but who also had a one-time contract with Kaufrog. They could receive salaries, including bonuses, that were likely to reach €400,000 gross. “If we add up the annual salaries of these three managers, we arrive at 211,000 meal days. For an Ehpad with 80 residents, this corresponds to almost seven years of food budget”, a former director of Orpea told France Info. In addition to their salary, there is also the question of the reality of the work of these managers, who are rarely seen in Switzerland, according to employees.

When contacted by France Info, Philippe Charrier, the new CEO of the Orpea group, said: “It is our duty to shed light on the accusations made against the group. This is what we have been doing for the past four months through extremely thorough investigations and audits. In this context, several channels of information have enabled us to detect potentially criminal facts, which call into question individual behaviour.”

Orpea's application to open a branch in Merl was submitted in January but no date has been set for the centre's opening.

This story was first published in French on . It has been translated and edited for Delano.