Tag: Financial Improprieties

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Minnesota Catholic Church Leaders Cover Abuse With Cash

File under:  Follow The Money

by Robert Lawson

Catholic church leaders in Minnesota were investigated by Minnesota Public Radio (MPR), who alleges that the church embezzled funds to cover child abuse and other misconduct with church cash, sources in the Twin Cities report. The investigation cited internal church documents to make their case that leaders of the Catholic church, such as the Archdiocese in the Twin Cites (Minneapolis/Saint Paul), paid millions of dollars to keep secrets quiet.

Minnesota-Catholic-Church-Leaders-Cover-Abuse-with-Cash-450x337MPR reported that the church had several secret accounts that led to financial abuse in the system. The accounts were used for payoffs for people like Rev. Stanley Kozlak, who fathered a child. Kozlak received payoffs for rent and living until he reached the age to retire on social security benefits. The internal documents in the church indicate that part of the agreement held that Kozlak would still be a priest, the Archbishop would have to sign a letter that states Kozlak isn’t a pedophile and that there would be negotiated child support. Over the course of nine years, from 2002 to 2011, the accounts had been used repeatedly and paid out around $11 million. That amounts to about three percent of revenue for that time period.

The efforts by the Catholic church to deal with clergy problems is staggering. Money was used to quietly allow some to leave their ministries. This strategy proved to be the back door to embezzlement within their secretly constructed financial system. Legal costs and therapy were also listed expenditures. In one instance, a private investigator was hired and paid more than $1o0,000 the Rochester Post Bulletin reported via Associated Press (AP). The Minnesota Catholic church leaders investigated appeared to have decided it was easier to cover up the problems with cash, but other abuse followed and it proved to be an expensive strategy.

The archdiocese made a statement on Thursday to address news of the investigation by MPR. They said they already hired a new CFO in December of 2012 to improve transparency, according to the report in the Post Bulletin. There are no government regulators that the Catholic church leaders are accountable to and the archbishop can spend money how he sees fit. There is a council that advises him, however. There will be a full audit completed by February.

MPR investigated to find that these payments, referred to as “disability” in the ledger account, were paid to victims and clergy. MPR reported a culture that kept many secrets within the walls of the Catholic church. Once accountant already pleaded guilty to stealing around $650,000 in cash from the church during these activities. He said people there knew what questions not to ask.

The MPR report and investigation also reveals the plump and healthy financial condition of the church, which has been infused with revenue over a five-year time span. Their operating revenue was up to around $40 million up to the point of 2011. Cash levels and assets grew as well, but now the Catholic church faces pressure from legal circumstances. The Minnesota Catholic church leaders tried to cover abuse with cash only to find more abuse and the threat of losing that very cash.

Complete Article HERE!

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Corruption scandal shakes Vatican as internal letters leaked

Say it ain’t so! Vatican and scandal in the same sentence? Can’t be!

The Vatican was shaken by a corruption scandal on Thursday after an Italian television investigation said a former top official had been transferred against his will after complaining about irregularities in awarding contracts.

The show “The Untouchables” on the respected private television network La 7 on Wednesday night showed what it said were several letters that Archbishop Carlo Maria Vigano, who was then deputy-governor of Vatican City, sent to superiors, including Pope Benedict, in 2011 about the corruption.

The Vatican issued a statement on Thursday criticising the “methods” used in the journalistic investigation. But it confirmed that the letters were authentic by expressing “sadness over the publication of reserved documents”.

As deputy governor of the Vatican City for two years from 2009 to 2011, Vigano was the number two official in a department responsible for maintaining the tiny city-state’s gardens, buildings, streets, museums and other infrastructure.

Vigano, currently the Vatican’s ambassador in Washington, said in the letters that when he took the job in 2009 he discovered a web of corruption, nepotism and cronyism linked to the awarding of contracts to outside companies at inflated prices.

In one letter, Vigano tells the pope of a smear campaign against him (Vigano) by other Vatican officials who wanted him transferred because they were upset that he had taken drastic steps to save the Vatican money by cleaning up its procedures.

“Holy Father, my transfer right now would provoke much disorientation and discouragement in those who have believed it was possible to clean up so many situations of corruption and abuse of power that have been rooted in the management of so many departments,” Vigano wrote to the pope on March 27, 2011.

In another letter to the pope on April 4, 2011, Vigano says he discovered the management of some Vatican City investments was entrusted to two funds managed by a committee of Italian bankers “who looked after their own interests more than ours”.

LOSS OF $2.5 MILLION, 550,000 EURO NATIVITY SCENE

Vigano says in the same letter that in one single financial transaction in December, 2009, “they made us lose two and a half million dollars”.

The programme interviewed a man it identified as a member of the bankers’ committee who said Vigano had developed a reputation as a “ballbreaker” among companies that had contracts with the Vatican, because of his insistence on transparency and competition.

The man’s face was blurred on the transmission and his voice was distorted in order to conceal his identity.

In one of the letters to the pope, Vigano said Vatican-employed maintenance workers were demoralised because “work was always given to the same companies at costs at least double compared to those charged outside the Vatican”.

For example, when Vigano discovered that the cost of the Vatican’s larger than life nativity scene in St Peter’s Square was 550,000 euros in 2009, he chopped 200,000 euros off the cost for the next Christmas, the programme said.

Even though, Vigano’s cost-cutting and transparency campaign helped turned Vatican City’s budget from deficit to surplus during his tenure, in 2011 unsigned articles criticising him as inefficient appeared in the Italian newspaper Il Giornale.

On March 22, 2011, Vatican Secretary of State Cardinal Tarcisio Bertone informed Vigano that he was being removed from his position, even though it was to have lasted until 2014.

Five days later he wrote to Bertone complaining that he was left “dumbfounded” by the ouster and because Bertone’s motives for his removal were identical to those published in an anonymous article published against him in Il Giornale that month.

In early April, Vigano went over Bertone’s head again and wrote directly to the pope, telling him that he had worked hard to “eliminate corruption, private interests and dysfunction that are widespread in various departments”.

He also tells the pope in the same letter that “no-one should be surprised about the press campaign against me” because he tried to root out corruption and had made enemies.

Despite his appeals to the pope that a transfer, even if it meant a promotion, “would be a defeat difficult for me to accept”, Vigano was named ambassador to Washington in October of last year after the sudden death of the previous envoy to the United States.

In its statement, the Vatican said the journalistic investigation had treated complicated subjects in a “partial and banal way” and could take steps to defend the “honour of morally upright people” who loyally serve the Church.

The statement said that today’s administration was a continuation of the “correct and transparent management that inspired Monsignor Vigano”.

Complete Article HERE!