Andorra Foundations Face Scrutiny Over Catalan Foster Youth Payment Scandal

The foundations managing Andorra's Centre Residencial d'Educació Intensiva (CREI), Resilis and Mercè Fontanilles, face intense scrutiny in Catalonia over their role in a scandal involving improper payments to former foster youth.

The two organisations form a temporary business union (UTE) that took over CREI operations in June 2022 through a contract awarded by the Andorran government. Officials at the time praised their expertise in psychosocial interventions for at-risk individuals, particularly children, adolescents, and young people.

However, a June 2025 report from Catalonia's Sindicatura de Comptes has spotlighted serious lapses. It found that the Catalan Department of Social Rights made over €167 million in undue payments between 2016 and 2024 to beneficiaries who failed to meet eligibility criteria. For former foster youth specifically, the figure reached €4.7 million.

The Sindicatura blamed these issues on risks inherent in outsourcing the monitoring of such aid. Resilis and Mercè Fontanilles independently run welcome flats for youth while jointly assessing and overseeing benefit allocations. This dual role, the report noted, creates a "risk of conflict of interest" in decision-making by the foundations' staff. They also require young residents to contribute to housing costs if they secure employment and income.

Catalan media have reported further allegations from current and former Department of Childhood and Adolescence Attention (DGAIA) workers linked to the foundations. They claim the organisations failed to track beneficiaries properly, leading to continued payments for youth who had jobs, lived outside Catalonia, or were no longer eligible. Accusations also include "ghost places," where staff were instructed to keep departed residents listed to maintain the appearance of full occupancy in welcome flats.

A separate external audit commissioned by the Social Rights department identified "major dysfunctions" and "ineffective procedures" in tracking housing and financial aid for ex-foster youth. While it ruled out outright fraud, it confirmed the UTE granted benefits without adequate follow-up—a problem that predated their involvement.

In response, the department is preparing to end Resilis and Mercè Fontanilles' oversight of ex-foster youth aid when their contract expires in December 2026. Authorities have not yet detailed impacts on the CREI contract in Andorra.