However, only half of the funds it has received have actually been used for accommodation.

The city of Malmö pays VoB Syd 37,000 kronor per day to operate transitional housing for unaccompanied refugee children in nearby Lomma, newspaper Sydsvenskan reported on Monday.

VoB Syd works with vulnerable children, youth and families to offer emergency housing for investigations and hearings. It is jointly owned by a number of municipalities in southern Sweden’s Skåne and Småland, including the Skåne Association of Local Authorities and the VoB Kronoberg municipal board.

By cutting back on staff, the care company has made millions in profits.

“The occupancy has varied. When there is lower occupancy, we need less staff,” VoB Syd CEO Rolf Beckman told the newspaper, admitting as well that the company’s profits were high.

The city has promised to review its agreement 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 fulfill the contract with us,” Annelie Larsson, administrative director of social resources management at the city of Malmö, told Sydsvenskan.