Tag: Financial Irregularities

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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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Pope’s bank clean-up man ‘found stuck in lift with rent boy’

As the man charged with cleaning out the stables at the scandal-struck Vatican bank, Monsignor Battista Ricca will need Machiavellian cunning, good fortune and a whiter-than-white record to have even a fighting chance.

Monsignor Battista RiccaBut Pope Francis’s new banker appears to possess none of these attributes after it was reported yesterday that he was found stuck in a lift with a rent boy. Msgr Ricca, as Francis’s new primate with responsibility for the troubled financial institution, known officially as the IoR (Institute for Religious Works), is supposed to usher in new transparency and badly needed reforms after years of financial scandal.

Earlier this month, a major report from finance police and magistrates warned that a lack of checks and controls by the IoR and the Italian financial institutions it had dealings with made the Vatican’s bank a money-laundering hot spot.

It is claimed that Msgr Ricca, 57, impressed Francis with the way he ran three key residences used by cardinals, bishops and priests visiting Rome. But detailed claims have emerged detailing how in 1999, Ricca took a Vatican diplomatic posting in Uruguay and moved his lover, Patrick Haari, a Swiss army captain, in with him, to the outrage of church figures and locals in the conservative South American nation. Captain Haari was forced out by the hardline Polish nuncio Janusz Bolonek in 2001.

But there were more problems for Ricca when he was attacked in a cruising ground that year, and soon after firemen had to rescue him from a broken lift, in which he was trapped with a youth known by local police. The weekly news magazine L’Espresso claims that Msgr Ricca was able to get the position as IoR prelate because the supposedly powerful “gay lobby” in the Vatican airbrushed his colourful CV.

Gay sex scandals at the Vatican have made the headlines before. In 2010 it emerged that one of Pope Benedict’s ceremonial ushers and a member of the Vatican choir were involved in a gay prostitution ring.

Vatican spokesman Padre Federico Lombardi sought to dismiss the claims about Msgr Ricca’s private life. “What has been claimed about Msgr Ricca is not credible,” he said. Msgr Ricca himself has not yet responded to the allegations. But La Repubblica noted that the Vatican had emphasised that his appointment as prelate for the IoR was technically an interim one, thus raising the possibility that the job might not last long.

Complete Article HERE!

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Archdiocese of Milwaukee faces Monday deadline to make public clergy sex abuse documents

The Archdiocese of Milwaukee was expected to release thousands of pages of documents related to clergy sex abuse on Monday, including the personnel files of more than three dozen priests and the depositions of church leaders including New York Cardinal Timothy Dolan, the former archbishop of Milwaukee.

A deal reached in federal bankruptcy court between the archdiocese and victims suing it for fraud called for the documents to be made public by July 1. Victims say the archdiocese transferred problem priests to new churches without warning parishioners and covered up priests’ crimes for decades. Many pushed for the documents’ release in the belief that it would be an important part of their healing.

Similar files made public by other Roman Catholic dioceses and religious orders have detailed how leaders tried to protect the church by shielding priests and not reporting child sex abuse to authorities. The cover-up extended to the top of the Catholic hierarchy. Correspondence obtained by The Associated Press in 2010 showed the future Pope Benedict XVI had resisted pleas in the 1980s to defrock a California priest with a record of molesting children. Cardinal Joseph Ratzinger led the Vatican office responsible for disciplining abusive priests before his election as pope.

The Milwaukee collection has drawn interest because of the involvement of Dolan, the president of the U.S. Conference of Catholic Bishops and the nation’s most prominent Roman Catholic official. Dolan has not been accused of transferring problem priests. He took over as archbishop in mid-2002, after many victims had already come forward. But there have been questions about his response to the crisis, including payments made to abusive priests when they left the church.

The archdiocese has characterized the money, as much as $20,000 in some cases, as a kind of severance pay meant to help priests transition out of the ministry. Similar amounts were made to men leaving the priesthood long before allegations of sexual abuse surfaced in the Catholic church, spokeswoman Julie Wolf said last year, when the payments came to light.

Charles Linneman, 45, of Sugar Grove, Ill., was among the abuse victims who spoke out against the payments and pushed for the archdiocese to release its records. Linneman said he was an altar boy when he met Franklyn Becker at a Wisconsin parish in 1980. He read the priest’s file several years ago when it became public during litigation in California, where Becker also served.

“It helped me move on,” Linneman said. In particular, he was relieved when the file showed no reports of children being abused after him, he said. He had long wondered if coming forward before he did in 2002 would have kept other children from being hurt.

Abuse victims have long sought to hold the church accountable, but most didn’t come forward until well into adulthood, when it was too late under Wisconsin law to sue the church for negligence in supervising its priests. A 2007 Wisconsin Supreme Court decision gave them a window, saying the six-year limit in fraud cases didn’t start until the deception was uncovered. The archdiocese filed for bankruptcy in 2011, once it became clear that it was likely to face a slew of lawsuits.

Complete Article HERE!

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Senior Vatican cleric arrested in money smuggling case

File under: Sex (particularly gay sex) is sinful. Money laundering and corruption, not so much. Gay mafia in Vatican = BAD! Regular mafia in Vatican = business as usual.

 

By Philip Pullella

A senior Catholic cleric with connections to the Vatican bank was arrested on Friday for plotting to help rich friends smuggle tens of millions of euros in cash into Italy from Switzerland, in the latest blow to the Vatican’s image.

monsignor-nunzio-scaranoMonsignor Nunzio Scarano, 61, who worked as a senior accountant in the Vatican’s financial administration, was arrested along with an Italian secret service agent and a financial intermediary in a tale that reads like a spy novel.

It involves police wiretaps, a private plane rented to collect the cash from Locarno, burned cell phones, an allegedly corrupt secret services agent who promised to get the money past customs and a shady financier.

Details of the case against Scarano will come as an acute embarrassment to Pope Francis, who, since his election in March, has pointedly eschewed many of the trappings of office and sought to stress the importance of a simple life of devotion.

Only two days ago, the Vatican announced he had set up a commission of inquiry into the Vatican bank, formally known as the Institute for Works of Religion (IOR), which has been hit by a number of scandals in the past decades.

Scarano, who was arrested in a Rome parish and taken to Rome’s Queen of Heaven jail, had hatched a plot to bring up to 40 million euros ($52 million) into Italy for a family of shipbuilders in his hometown of Salerno in southern Italy, magistrate Nello Rossi told reporters.

Rossi is already investigating the Vatican bank for money laundering, and the latest arrests stemmed from that.

Rossi and fellow magistrate Stefano Pesci said there was no indication so far that the bank was directly involved in the attempt to bring the money into Italy, but that the investigation was continuing and more searches were underway.

Scarano is under separate investigation in southern Italy in relation to his accounts in the Vatican bank.

CELL PHONES DESTROYED

According to Rossi, in July last year Scarano engaged Giovanni Zito, a paramilitary Carabiniere policeman on loan to the secret services, to help him get the money, which was in a Swiss bank, into Italy without tax and customs controls.

The third person arrested was Giovanni Carenzio, a financial broker with offices in Switzerland and the Canary Islands and who was acting as the fiduciary for the owners of the money.

The three originally planned to bring back 40 million euros in cash but later reduced it to 20 million euros.

A private plane went to Locarno from Rome and waited several days before returning to Rome without the money.

The cash never left Switzerland because of disagreements and nervousness among the three, Rossi said, adding that cell phones that were used were later destroyed by being burned.

Zito had promised to use his position in the secret services to avoid customs controls. The plane was to have been met on the runway of a Rome airport and the cash taken under armed escort to Scarano’s home in Rome, Rossi said.

Even though the money never left the Swiss bank, Zito demanded the payment he had been promised for his services.

Scarano gave Zito two checks, one for 400,000 euros and another for 200,000 euros. Zito cashed the first check but Scarano blocked the second before Zito could cash it by filing a false report that it had been lost.

VATICAN READY TO COOPERATE

Asked if money laundering was involved, Rossi said that would depend if the continuing investigation determined that the original source of the money was criminal activity.

“We are trying to determine the origin of the vast amount of money that was at the disposal of Scarano, who is the holder of several accounts at IOR,” Rossi said.

Vatican spokesman Father Federico Lombardi said Vatican authorities stood ready to cooperate with the Italian investigation, but had so far received no official request.

He said the FIA, the Vatican’s own financial intelligence authority, was following the case and would take action if necessary.

Scarano worked for years as a senior accountant for a Vatican department known as APSA, whose official title is the Administration of the Patrimony of the Apostolic See.

He was suspended from his duties several weeks ago when he was placed under investigation by magistrates in Salerno.

In that investigation, his lawyer Silverio Sica said wealthy friends had donated money to Scarano in order for him to build a home for the terminally ill.

According to Sica, his client wanted to use that money to pay off his mortgage so he could sell a property in Salerno and use the proceeds to build the care home.

Apparently to cover his tracks, Scarano has been accused of taking 560,000 euros in cash out of his account in the Vatican bank and giving various amounts to friends who gave him checks in exchange.

He then deposited the checks into an Italian bank account to pay off the mortgage. ($1 = 0.7691 euros)

Complete Article HERE!

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Philly Archdiocese grappling with pensions for clergy

File under: Say it ain’t so! Financial irregularities? In the Catholic Church? Can’t be!

 

By John P. Martin

A pension fund for priests cited as a priority in a $200 million fund-raising campaign by the Archdiocese of Philadelphia has fallen precariously short of money, and church officials want parishes and retired clergy to help cover the shortfall.

In meetings this spring, Archbishop Charles J. Chaput told priests the plan had been underfunded, poorly managed, and was spent on rising health-care costs for clergy, according to three priests who attended or were briefed on the talks. Chaput said the fund needed $90 million to be solvent but had less than $4.5 million, they said.

Clergy living at the archdiocese’s Delaware County retirement villa and other church-owned facilities are expected to contribute 40 percent of their pensions to the archdiocese, the priests said. And parishes’ annual assessments to the pension fund will rise from $6,700 to about $9,300 per priest, they said.

The changes come two years after the archdiocese ended a fund-raising campaign that made shoring up the priests’ pension plan one of its goals.

Kenneth Gavin, a spokesman for the archdiocese, said the policy requiring priests in church-owned facilities to refund portions of their pensions started in April. He would not discuss other changes or aspects of the pension plan, including what the archbishop said in his private meetings with clergy.

Gavin said the archdiocese planned to release “detailed financial reports” about its spending and costs this summer.

Rumblings about the pension troubles started last year, catching some priests by surprise.

“I was certainly horrified to learn that our pension fund was not secure, as would be any person who works in any organization,” said the Rev. Christopher Walsh, pastor of St. Raymond of Penafort in Mount Airy.

Walsh, who helped organize a fledgling association for archdiocesan priests, did not attend the meetings but said he learned about them from others who did. He said he hoped Chaput and his staff would “quickly establish a secure pension fund as a matter of justice.”

Dioceses across the country have faced similar financial struggles in recent years, compounded by dwindling attendance, aging clergy, and the economic downturn. But the impact has been acute in Philadelphia, where more than a million Catholics and hundreds of priests are also grappling with the fallout from clergy sex-abuse allegations. “The caveat for priests was always that the diocese was going to take care of you,” said one Philadelphia pastor nearing retirement who asked not to be identified discussing his employer’s finances. “None of us knew when Chaput arrived here 20 months ago that the diocese was in this bad of shape.”

Chaput himself didn’t know it, he conceded in an interview with The Inquirer in the fall. Only after moving from Denver in 2011, he said, did he realize that his predecessors in Philadelphia had relied on deficit-spending budgets for 15 years.

His tenure since has included a drumbeat of grim financial decisions: shuttering schools, closing or merging parishes, and selling off assets, including the cardinal’s residence on City Avenue and an oceanfront home for clergy in Ventnor, N.J.

The archdiocese has 425 active priests, most living in rectories and other church-owned facilities across the region. It also counts 161 retired priests on its rolls, and cares for many of them. If they remain healthy, priests typically retire at age 75 and qualify for an annual pension worth half their final salary, usually about $12,000, clergy members said.

Some leave to live with relatives or on their own in private homes. Others live in parish rectories, or at Villa St. Joseph, a church-owned retirement complex in Darby. But some of the older archdiocesan priests never registered for Social Security, and they end up retiring without a guaranteed government check or medical benefits, priests said.

Adding to the pension fund was one of six goals highlighted during the “Heritage of Faith, Vision of Hope” fund-raising campaign launched in 2009.

“Established in the early 1990s, the priests’ pension plan currently has over $10 million in assets,” literature for the campaign said. “In order to meet the anticipated needs of our retired priests, the pension plan requires an additional $40 million.”

That campaign sought $12 million for the pension plan and $3 million for renovations at Villa St. Joseph.

When it ended in early 2011, the campaign had yielded pledges of more than $220 million, church officials said. Earlier this year, they publicly acknowledged that collections on those pledges had fallen short, and they downgraded their projected receipts to less than $180 million.

Gavin, the spokesman, said $4 million in Heritage of Faith donations were transferred into the priest pension fund on Jan. 31. But he declined to elaborate or discuss updated totals for the rest of the money collected and spent, a topic the archdiocese is expected to address in its report this summer.

One suburban pastor said the redemption rate on pledges “took a dive” soon after the campaign ended, about the same time a Philadelphia grand jury report led to the arrest of four current or former priests and the suspension of two dozen others accused of child sex abuse or misconduct.

In his meetings with clergy, the archbishop specifically denied that their pension funds had been used to cover costs related to the suspensions or ensuing investigations, some of which are still open, the priests said.

Last year, Chaput reported that the archdiocese had spent more than $11 million through June 2012 related to those cases.

The abuse and misconduct allegations have had at least an indirect impact, pushing more priests into early retirement. Priests who have agreed to leave public ministry and accept a life of “prayer and penance” after being accused of sexual abuse or misconduct are eligible to collect their pensions, according to information on the archdiocese’s website. At least 19 priests are now living under such restrictions, most on the same campus as Villa St. Joseph’s.

At least 25 other priests from the Archdiocese of Philadelphia have been laicized or voluntarily left the priesthood in the last decade. Church officials have not disclosed how many of those defrocked priests, some of whom were in the clergy for decades, collect a pension.

Earlier this month, Gavin declined another request for that information.

One pastor who attended a meeting with Chaput said he believed the archbishop was doing everything possible to keep them informed and find solutions to the financial mess he inherited. “I have total confidence that we’ve been given a correct and honest appraisal of things,” the priest said. Rita Schwartz, union president for non-religious teachers in archdiocesan schools, said she had heard about the troubles with the priests’ pensions, but was confident that pensions for archdiocesan teachers, which are managed through a separate trust, were stable.

Clergy pension funds have plunged in Boston and other dioceses, according to Charles Zech, who directs the center for the study of church management at Villanova University. Zech said he had not examined the financial situation in Philadelphia but wasn’t surprised to hear about the pension-fund troubles.

This archdiocese, he said, seems to have been battered by “a perfect storm of bad things happening at once.”

Correction: This story was corrected to reflect that the $11 million cost to the Archdiocese stemming from the sexual abuse scandal was not covered by insurance.

Complete Article HERE!

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New book alleges indiscretions in the Philippine Church

A book launched on Friday is set to send shockwaves through the Philippines Church, with serious allegations about the behavior of bishops and clergy.

“Altar of Secrets: Sex, Politics, and Money in the Philippine Catholic Church,” describes an institution cloaked in secrecy.

It claims that Church leaders have been concealing wrongdoings committed by bishops and clergy, including sexual misconduct, financial mismanagement, and corruption, for many years.

Author Aries Rufo, who researched the book over 20 years of covering the institutional church as a journalist, said he does not intend to destroy the reputation of the country’s bishops and priests.

“Are we out to destroy the Church? Of course the answer is no. How can one book destroy a Church that has been in existence for more than two thousand years?” Rufo said.

He said he has dedicated the book to “those who remain steadfast in their faith yet ache for reforms within the Holy Mother Church.”

Among its revelations, the book recounts how protégés of the late Cardinal Jaime Sin of Manila committed “indiscretions involving the opposite sex.”

Former Manila auxiliary bishops Teodoro Bacani and Crisostomo Yalung were both promising prelates before their fall from grace.

Yalung, who was 47 when the scandal happened, fathered two children with a 23-year-old woman. He later escaped to the United States where he now resides, after failing to account for millions of pesos of Church funds.

Bacani resigned as Bishop of Novaliches in 2003 after being accused of sexual harassment by his personal secretary. He denied the accusations but admitted making an “inappropriate expression of affection.”

He retains his episcopal office and continues to say Mass in the Archdiocese of Manila.

“Their cases are a microcosm of how Church superiors handle cases of sexual dalliances involving prelates – a conspiracy of silence on the pretext of an internal Church investigation,” says Rufo in the book.

“They show a Church which put its blind trust on its erring members, amid the mounting evidence and calls by lay leaders for an immediate investigation; a Church that was more concerned in protecting the privacy of its erring members than the welfare of the victim or victims; and a Church that was quick to condemn the other party as guilty, yet just as fast to absolve its erring member.”

Marites Danguilan Vitug, publisher and editor of the book, called it “the first of its kind” in the country and an attempt “to bring some air and light into a musty place, where there’s so little circulation and transparency.”

Vitug noted that the Catholic Church is one of the most impenetrable and least scrutinized institutions in the Philippines.

“In raising these issues about the Church, we want to encourage an open discussion that, hopefully, will lead to a more discerning public,” he said.

Complete Article HERE!

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Pope to review Vatican bureaucracy, scandal-ridden bank

Pope Francis, who has said he wants the Catholic Church to be a model of austerity and honesty, could restructure or even close the Vatican’s scandal-ridden bank as part of a broad review of its troubled bureaucracy, Vatican sources say.

By Philip Pullella
Francis, who inherited a Church mired in scandals over priests’ sexual abuse of children and the leak of confidential documents alleging corruption and infighting in the Vatican’s central administration, is mulling his options as he sets the tone for a reformed and humbler Holy See.

vaticanOne of the tests of his papacy will be what he does about the bank which has regularly damaged the Vatican’s image over three decades and faces growing calls for reform.

Last year a European anti-money laundering body found that the bank – formally called the Institute for Works of Religion and known by the Italian acronym IOR – had failed to meet some of its standards on fighting financial crimes.

“Certainly if the pope wants to, he can close the IOR,” said a senior Vatican official, a prelate who had years of experience of directly dealing with the bank. The future of the IOR was one of main issues Francis would have to confront now that the whirlwind of his surprise election was slowing, he said.

Any significant reforms of the IOR would not come for some time and would probably be made after changes at the Secretariat of State, the central Church department which was at the center of a “Vatileaks” scandal that rocked the Holy See last year.

These changes would include the replacement of its head, Cardinal Tarciscio Bertone, who is number two in the Vatican hierarchy and has widely been blamed for failing to prevent the many mishaps and infighting in Church government during the eight-year pontificate of Pope Benedict.

“It will take time (to change the bank),” said another Vatican official who is not a prelate. Both officials spoke on condition of anonymity.

The second official believed it was more likely that the bank, which manages money for the Vatican, international Catholic religious institutions and orders of priests and nuns, would undergo “serious restructuring” rather than being closed.

“But I would not exclude anything, including closing it down the line. Francis is doing surprising things every day,” he said.

Both officials said the new pope might, as a first step, set up a committee to advise him on possible changes to the Vatican’s financial structure.

The first sign of change would be a new secretary of state. “It’s not a question of if but when Bertone leaves,” the senior prelate said. “It remains to be seen who the pope chooses as new secretary of state.”

CRISIS IN THE CURIA

The basic failings of the Curia, as the Vatican’s central administration is known, were aired, sometimes passionately, at closed-door meetings of cardinals before they retired into the conclave that elected Francis on March 13.

“The Curia did not come out smelling like a rose from those meetings,” the senior prelate said, adding that many cardinals had demanded explanations of the scandals and information on how the bank is run and whether it should exist at all.

“The IOR is not an essential part of the ministry of the Holy Father as a successor of St. Peter,” Cardinal John Onaiyekan of Nigeria told an Italian television station before the election of Francis. “The IOR is not fundamental, it is not sacramental, it is not part of (Church) dogma.”

Anger at the Italian prelates who mostly run the Curia was one of the reasons that the cardinals chose the first non-European pope for 1,300 years at the conclave and quashed the chances of one of the frontrunners, Milan Archbishop Angelo Scola.

The next secretary of state, the senior source said, would have to instill a new style of “collaboration and service” among offices of the Curia, whose image was badly stained by the “Vatileaks” scandal.

Before he resigned, Benedict left a secret report for Francis on the scandal, in which sensitive documents alleging corruption and conflict over the bank’s administration were stolen from the pope’s desk and leaked by his butler.

The butler, Paolo Gabriele, was arrested and sentenced by a Vatican court to 18 months in prison last year but Benedict pardoned him and he was freed just before Christmas.

Bertone has been directly linked to the IOR’s recent troubles. He was the chief promoter of Ettore Gotti Tedeschi, an Italian who headed the bank until last May when its board unceremoniously ousted him.

Gotti Tedeschi said at the time he was fired because he wanted the bank to be more transparent but board members said it was because he had neglected basic management responsibilities and alienated staff.

In 2010, when Gotti Tedeschi was still at the helm of the bank, Rome magistrates investigating money laundering froze 23 million euros ($33 million) the IOR held in an Italian bank.

The Vatican said the bank was merely transferring funds between its own accounts in Italy and Germany. The money was released in June 2011 but the investigation is continuing.

In February, the Vatican named a German lawyer, Ernst von Freyberg as new IOR president. But the appointment, made two weeks before Pope Benedict resigned, was clouded by Freyberg’s past business links to a military shipbuilder.

At the time of appointment, the Vatican said Freyberg would contribute to the IOR’s modernization and transparency in its attempts to meet international standards.

BAD IMAGE

“The Vatican Bank or IOR, is not unique. They are not the worst (bank), but certainly there are very serious problems that need to be addressed,” said E.J. Fagan, advocacy coordinator at Global Financial Integrity, an organization that seeks to curtail illicit money transfers.

“Pope Francis has very clearly stated that he wants to fight poverty. Money laundering of illicit financial flows is a major driver of global poverty and the Vatican should set a clear example,” he told Reuters.

The Vatican has been trying to shed its image as a suspect financial center since 1982 when Roberto Calvi, an Italian known as “God’s Banker” because of his links to the Holy See, was found hanged under London’s Blackfriars Bridge.

Moneyval, a monitoring committee of the 47-nation Council of Europe, said last July that the Vatican had failed to meet all its standards on fighting illicit cash flows, tax evasion and other financial crimes.

A report by Moneyval gave the Vatican an overall pass grade but failing grades on 7 of 16 “key and core” aspects of its financial dealings. It found major failings in the running of the bank, while acknowledging that the IOR was making changes to meet transparency requirements.

Five months before the Moneyval report, JP Morgan Chase closed the IOR’s account with the Milan branch of the U.S. banking giant because of concerns about insufficient transparency.

Italian media have reported that the bank, which currently answers to a commission of cardinals and enjoys great autonomy, could be placed under the control of another Vatican department, increasing the oversight called for in the Moneyval report.

Famiglia Cristiana, Italy’s leading Catholic weekly, called for the IOR funds to be administered by an independent “ethical bank” external to the Vatican.

“Total transparency would assure the faithful, who are continuing to offer generously, that the money they give to the Church, after the part used to guarantee the good running of the Church itself, would be destined primarily for the world’s poor,” the highly influential magazine said.

John Allen, author of several books on the Vatican and correspondent for the National Catholic Reporter, said there was talk among cardinals at the pre-conclave meetings “that the Vatican does not need its own bank, and getting rid of it would eliminate a perennial source of speculation and conspiracy theories”.

Much of the estimated $7 billion managed by the bank, which was set up in 1942, belongs not to the Vatican but to religious orders and dioceses, who use it to transfer funds around the world.

Another option for the bank’s future would be to scale it down so it manages only funds needed to keep the Vatican running, drastically reducing the number of outside accounts and making it less vulnerable to possible abuse.

“We could just say to the Jesuits, the Dominicans, the Franciscans: ‘Sirs, you will have to take your business elsewhere’,” the senior prelate said.

However, part of bank’s profits have helped the Holy See balance its budget in the past, making up for deficits running into tens of millions of dollars.

This means that if the bank were to be phased out or closed, other sources of income would have to be found to fill the gap, the senior prelate said.

The Holy See would probably be careful, however, before relinquishing too much financial autonomy to outsiders so as to maintain its flexibility in emergency situations.

For example, before the fall of the Berlin Wall in 1989, the bank was able to move money to countries in the former Soviet bloc to keep Catholic Churches alive there in the face of communist repression.

Complete Article HERE!

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Hushed up: cash probe into priest who made sex complaint against Keith O’Brien

A priest at the centre of the scandal that forced the leader of Scotland’s Catholics to stand down was forced to leave his parish following an investigation into church finances.

By Gerry Braiden

The man is the cleric who has complained to the Vatican he was sexually assaulted by Cardinal Keith O’Brien in Rome on the night he was made cardinal by Pope John Paul II in 2003.

That complaint was made in September 2012. Now it has emerged that, in 2011 the priest, currently on leave of absence from the church, was found to have overspent parish funds by a six-figure sum.

He resigned within hours of the appointment of Hugh Gilbert as Bishop of Aberdeen in August 2011 and several days later was told to leave his presbytery.

As parish priest, sources insist he had a legal right to many church items he is alleged to have taken on his departure.

One source said: “I wouldn’t say the money was trousered. There was clearly money not there. A lot of money. Six figures. But it was found to have been overspent.

“When he left the place was stripped. It was church items. But in the eyes of the law, as the priest, these were his possessions so it was never reported to the police.

“Bishop Moran [the previous Bishop of Aberdeen] didn’t want to deal with this. Bishop Hugh Gilbert did. He loves this man like a son but he told him to leave the parish.

“There was no willingness to make any of this public because of the damage to the church.”

A spokesman for the Catholic Church in Scotland said: “The priest concerned is a priest of the diocese of Aberdeen currently on a leave of absence.”

Among the items left behind were printouts of online conversations he had with a youth who claimed to have been abused by a priest in Northern Ireland.

The printouts were given to police in Northern Ireland but they decided not to act against the Belfast-based priest.

It has also emerged the priest who complained about Cardinal O’Brien is a long-standing and close friend of a senior figure in the Catholic Church in Scotland and was on holiday with him on the continent months before being told to leave.

The senior church official has been insisting he has had no part in any campaign to bring down Cardinal O’Brien.

Earlier this week, The Herald reported that one of those who has accused Cardinal O’Brien had been in a long-standing physical relationship with him.

The man is still a priest and is currently a chaplain on the continent. Two of the others are still serving priests in the Archdiocese of St Andrews and Edinburgh. All their identities are known to The Herald.

It has also emerged two of the complainants were very close friends of a priest in the Archdiocese of St Andrews and Edinburgh who committed suicide a decade ago, having attended Blairs College and Drygrange seminary with him.

He was found hanged in his presbytery by Cardinal O’Brien, a week before he was due to go on holiday with one of the complainers.

Cardinal O’Brien, 75, was due to help choose the new pope before he admitted his sexual conduct had “fallen below the standards expected of me as a priest, archbishop and cardinal”. He apologised and said he was retiring from public life.

Complete Article HERE!

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The Election Of Pope Francis Opens The Door On Another Sordid Vatican Story

More marvelous commentary from Enlightened Catholicism.

“The Great Spirit, she does have her coyote face”. So said a Native American to me once at a ceremony. The implication was that what seems on the surface a good thing sometimes leads to lessons and wisdom you never imagined. Sometimes it brings with it more light on more things than a person really wants exposed. Sometimes a person is more or less forced to go well beyond what they originally intended. Sometimes when the Spirit opens a door, instead of a tiled hallway there is a very fast moving conveyor belt that has no side stops. I think in the election of Cardinal Bergogolio as Pope Francis, the Spirit has once again opened a door on to one of those fast moving, one direction only, conveyor belts.

 

The behavior of the Roman Catholic Church in South America during the 70’s and 80’s is much more than a story of what the then Argentinian Jesuit Provincial and current Pope Francis may or may not have done. It’s way beyond that. It’s about a systematic implementation of a CIA strategy designed to keep American global corporate interests ascendant and the organized opposition to that ascendancy in check. In this geo political game, Pope Francis was a bit player, a loyal Jesuit soldier under the command of his clerical superiors in Argentina and Rome. He isn’t any longer. He is on the throne, no longer a mostly disengaged member of the College of Cardinals and that fact has opened the door to that very fast moving conveyor belt. The Vatican press office can try to stop that conveyor belt with denials, denunciations, and self righteous anger, but it isn’t going to work any better now than the same strategy did at the beginning of the clerical abuse crisis. For all the Vatican’s efforts at minimizing that crisis and stopping the conveyor belt behind that door, the belt is still running. The Church can not get off it and the exit has not been reached.

Pope Francis is faced with his first serious crisis and that crisis exists precisely because the Spirit influenced the Cardinal electors to choose a man from Argentina who was, minimally or not, entangled with the very same military junta who provided the training, along with the US School of the Americas, for the Contras in Nicuragua. The Contras were trained by the same SOA who also trained those who gunned down El Salvadoran Archbishop Oscar Romero as well as six of Francis’ fellow Jesuits, and who were funded by CIA money filtered through the Vatican of JPII. That very Vatican whose CDF was headed by one Joseph Ratzinger who was tasked with silencing liberation theology, and whose diplomatic corps, under one Angelo Sodano, worked hand in glove with western intelligence agencies to promote agendas having exactly nothing to do with the teachings of Jesus Christ. My guess is if we want to know what the connection was between Ratzinger and Sodano we need not look much further than the Vatican’s clandestine actions in South and Central America.

Pope Francis will not get off this conveyor belt until there is utter transparency concerning the Church’s involvement with the CIA and other Latin right wing interests during this time frame. It isn’t just a matter of purging the Vatican of financial and sexual corruption. It is a matter of purging the Vatican of the geo political games that fuel so much of that corruption. Roman Catholicism can not go forward until it is purged of the arrogance of the curia and the bizarre thinking that Jesus wanted a Church for the political domination of the poor. Francis can not establish a poor Church for the poor as long as clergy keep diplomatic secrets, because those secrets give others the leverage to manipulate both the Church and his papacy.

Pope Francis needs to open all the secret doors and windows and files and archives so that the Church can finally function in the light and not in shadows. He himself needs to understand he is no longer shackled by the personal vows of silence and obedience, vows which must have come close to choking him on his own priestly collar. We can not talk about a reformed Church while being continually dragged down by the worst secrets of the unreformed. Confess the secrets, trust in the mercy of God, and sin no more. Isn’t that how the mantra goes?

Complete Article HERE!

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Cardinal Mahony used cemetery money to pay sex abuse settlement

By Harriet Ryan

The Archdiocese of L.A. took $115 million from its cemeteries’ maintenance fund in 2007, nearly depleting it. The move seems legal, but it was not announced, and relatives of the dead were not told.

Pressed to come up with hundreds of millions of dollars to settle clergy sex abuse lawsuits, Cardinal Roger M. Mahony turned to one group of Catholics whose faith could not be shaken: the dead.

Under his leadership in 2007, the Archdiocese of Los Angeles quietly appropriated $115 million from a cemetery maintenance fund and used it to help pay a landmark settlement with molestation victims.

The church did not inform relatives of the deceased that it had taken the money, which amounted to 88% of the fund. Families of those buried in church-owned cemeteries and interred in its mausoleums have contributed to a dedicated account for the perpetual care of graves, crypts and grounds since the 1890s.

Mahony and other church officials also did not mention the cemetery fund in numerous public statements about how the archdiocese planned to cover the $660-million abuse settlement. In detailed presentations to parish groups, the cardinal and his aides said they had cashed in substantial investments to pay the settlement, but they did not disclose that the main asset liquidated was cemetery money.

In response to questions from The Times, the archdiocese acknowledged using the maintenance account to help settle abuse claims. It said in a statement that the appropriation had “no effect” on cemetery upkeep and enabled the archdiocese “to protect the assets of our parishes, schools and essential ministries.”

Under cemetery contracts, 15% of burial bills are paid into an account the archdiocese is required to maintain for what church financial records describe as “the general care and maintenance of cemetery properties in perpetuity.”

Day-to-day upkeep at the archdiocese’s 11 cemeteries and its cathedral mausoleum is financed by cemetery sales revenue separate from the 15% deposited into the fund, spokeswoman Carolina Guevara said. Based on actuarial predictions, it would be at least 187 years before cemeteries are fully occupied and the church started to draw on the maintenance account, she said.

“We estimate that Perpetual Care funds will not be needed until after the year 2200,” Guevara wrote in an email.

The church’s use of fund money appears to be legal. State law prohibits private cemeteries from touching the principal of their perpetual care funds and bars them from using the interest on those funds for anything other than maintenance. Those laws, however, do not apply to cemeteries run by religious organizations.

Mary Dispenza, who received a 2006 settlement from the archdiocese over claims of molestation by her parish priest in the 1940s, said her great-uncle and great-aunt are buried in Calvary Cemetery in East L.A.

“I think it’s very deceptive,” she said of the way the appropriation was handled. “And I think in a way they took it from people who had no voice: the dead. They can’t react, they can’t respond.”

The fund dates to the tenure of Bishop Francis Mora, who opened Calvary in 1896. An official archdiocese history published in 2006 recounts how the faithful of Mora’s era were assured their money was “in the custody of an organization of unquestionable integrity and endurance” — the Catholic Church.

Over the next century, the archdiocese built more cemeteries, and each person laid to rest meant a new deposit into the maintenance account. By the time of the sex abuse settlement, there were cemeteries from Pomona to Santa Barbara and $130 million in the fund. Church officials removed $114.9 million in October 2007.

Complete Article HERE!