Housing Ministry and 'Fond du Logement' searched

(CS/ks) Offices of the Housing Ministry and the “Fonds du Logement” were reportedly searched on Tuesday morning, with investigators looking for documents linked to the sale of a piece of land in Leudelange.

RTL reported on Tuesday that the search had taken place, opening the next chapter in a scandal that has seen the director of the housing fund removed from his post over allegations of influence peddling.

The housing fund in 2011 sold a piece of land to developer Livingroom SA, which at the time was not yet classified as building plots. It was apparently agreed that the land would be sold at a cheaper price and Miltgen would try to help with the reclassification.

Miltgen at the time chaired an inter-ministerial working group on development plans. The commission in May 2014 greenlighted the reclassification.

Miltgen has refuted allegations of influence peddling but was removed from his post in March this year.

Housing Minister Maggy Nagel forwarded a written copy of the agreement to the prosecutor's office, which is now investigating and carried out the search.