Ehpad Orpea: rationed meals and highly paid executives, revelations about the group’s buying center

This Thursday, May 19, Radio France’s investigative cell uncovers dubious activities on the part of Kauforg, the Swiss purchasing center of the Orpea group. This Wednesday, May 18, the group’s stock market performance collapsed due to new revelations from Mediapart.

Definitely Orpea is not done making people talk about it yet. After the shocking revelations in Victor Castanet’s book “Les Fossoyeurs” about the activities of the group in its Epada statements

accumulate around questionable practices that surround the group. And now it is the methods of its central purchasing department, based in Switzerland, that have become the object of an investigation by Radio France.

To establish context, it should be noted that the investigation by the investigation team of Radio France refers here to Caufor. This is the purchasing center responsible for placing food orders for the Orpea group. in France. In this way, Kaufor, based in Switzerland, centralized invoices and saved money thanks to high order volumes.

So the Ehpad chefs placed their order with suppliers who sent invoices directly to Kaufor, who in turn billed the establishments.

Very limited rations for residents, very high salaries for executives

So far, nothing special. Except that the purpose of making a profit, in particular with regard to food, seems to have been forced, since a daily cost of about four euros per inhabitant for three meals a day and a snack, was convicted “inadequate”, According to a report by the General Inspectorate for Social Affairs (IGAS) and the Financial Inspectorate (IGF), quoted by France Info.

But savings on food rations for residents of the nursing home did not touch some of the company’s leaders. And here the revelations are striking: indeed, Radio France reports that the three Frenchmen at the head of Kaufor were employees of Orpea France (based in Puteaux), but that they benefited in parallel from the third contract with Caufor.

Thus, in the employment contract that the journalists who signed this survey were able to obtain, we find that this third time, a remuneration corresponding to 143,000 euros per year was plannedbut besides, they could take advantage of the bonus set by the employer based on employee performance.

In some Orpea nursing homes, the food budget is as low as 4 euros per day. We have identified a group food purchasing center. His practice, based in Switzerland, raises questions. https://t.co/s4g4YLt4bH pic.twitter.com/sIDpKRa8FC

— Radio France Investigation Department (@InvestigationRF) May 19, 2022

“Up to 7 years of the food budget”

So one of the salaries rose to 400,000 euros in a year… for the third time. A former Orpea director calculated that by combining the annual salaries of the three executives identified in the survey, “we got 211,000 lunch days. For Ehpad of 80 inhabitants, this corresponds to almost a seven-year food budget.”

In addition to their remuneration, the full overview, which can be found on the France Info website, focuses on their specific missions under this contract, the amazing services, as well as the financial connections that may have been made between Caufor and some of his suppliers.

Orpea answers

Asked in the context of the Radio Farnce investigation, Philippe Charrier, CEO of the Orpea group, said he intends to “shine the allegations against the group. This is what we have been doing for four months through extremely thorough investigation and verification. In this context, several information channels have allowed us to discover potentially criminal facts that cast doubt on the behavior of individuals.”

In a press release issued this Thursday, May 19, the group indicates that a complaint against X has been filed with the public prosecutor’s office of Nanterre.

“This complaint is the result of investigations that have identified a number of cases of fraud that may have been committed by the Company or its subsidiaries. At this time, the Company does not identify any material adverse impact of the actions thus condemned on its cash or its real estate. He will use all means at his disposal to recover the amounts he would have been deprived of as a result of these actions,” the press release says.

Médiapart investigation reveals holding company

This Wednesday, May 18, Mediapart and the Investigate Europe journalistic team spotted the Luxembourg-based holding company Lipany, established in 2007, which “accumulated €92 million worth of assets”, “mainly stakes in many nursing homes and clinics run by Orpea”. especially in France. The investigation raises “suspicious financial transactions”. On the same day, Orpea’s share of the stock market fell 19%.