A care company which provides transitional housing for refugee children in Sweden has been slammed for pocketing nearly SEK 3 million (USD 456,330) in profits since April this year. The city of Malmo pays the VoB Syd firm SEK 37,000 a day to provide housing for unaccompanied refugee children in the nearby Lomma area, but according to newspaper Sydsvenskan, only half of this is actually spent on accommodation.
VoB Syd is jointly owned by a number of municipalities in Skane and Smaland, southern Sweden, including the Vob Kronoberg municipal board and the Skane Association of Local Authorities. The company has reportedly made millions in proceeds since cutting back on staff.
Admitting that profits were high, Vob Syd CEO Rolf Beckman said, “The occupancy has varied. When there is lower occupancy, we need less staff.”
Malmo administrative director of social resources management, Annelie Larsson, has promised to review the city’s dealings with the company. “We do not scrutinise how VoB Syd uses the money. However, there is no doubt that this really stings. It’s shocking. We need to look at how they fulfil the contract with us,” she said.