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WHAT HAS STALLED PROGRESS IN UPROOTING THE VATICAN’S FINANCIAL CORRUPTION?

A range of sources agree that profound change is required to correct the flawed underlying mentality that continues to give rise to problems, and has allowed senior officials to escape taking responsibility.

Police patrol St. Peter’s Square and the Vatican on March 25. (Photo: Register file photo/Edward Pentin)

Edward Pentin Vatican 2020 National Catholic Register

VATICAN CITY — Cardinal George Pell, the former prefect of the Vatican’s Secretariat for the Economy which Pope Francis created six years ago to monitor and reform Vatican finances, delivered a pointed message on June 30 about the threat that financial corruption poses to the Church’s mission.

“Undoubtedly, money is one of God’s gifts, it is also a source of temptation,” Pell said in a video message delivered June 30 to the Global Institute of Church Management at the Pontifical University of the Holy Cross in Rome. “To say that the Church is not a business provides no justification for us to be inefficient much less for us to be corrupt.”

He recalled being surprised to learn that St. Teresa of Calcutta had said “for the clergy there are two great challenges: one touches on sexuality and another touched on money. And she thought that the danger from money was greater and stronger than that from errant sexuality.”

Cardinal Pell’s remarks were conspicuously well-timed, coming in the wake of the arrest last month of Italian financier Gianluigi Torzi on charges of “extortion, embezzlement, aggravated fraud and money laundering,” relating to a London property deal carried out by Vatican Secretariat of State officials that went sour.

The continuing controversy over the flawed transaction has focused attention on Vatican management practices that have allowed senior officials to duck their own responsibility and act with impunity, fostering both corruption and poor morale among some Vatican officials, according to a range of sources who spoke with the Register.

The cardinal’s video message also came just one day after companies owned by Italian businessman Raffaele Mincione, who was also connected with the London investment, filed lawsuits against the Secretariat of State and the holding company that owns the property.

The Vatican apprehended Torzi on June 5 and then granted him bail ten days later. Senior Vatican officials, meanwhile, claimed to have no knowledge of Torzi’s alleged crimes or preferred not to comment.

A two-year investigative report by the Financial Times, however, found evidence that the deal was “signed off by some of the most senior officials in the Catholic Church.” 

The documented evidence, the article added, “cast doubt on the Vatican’s official narrative” that the speculative London property deal that has burdened the Vatican with enormous financial losses “was the work of Torzi and a handful of junior administrators who have been suspended during the investigation.”

A former Vatican official told the Register it was “inconceivable” that senior curial officials knew nothing about the deal. “How does one single layman force the most powerful dicastery in the Roman Curia to do something like that?” the ex-official asked.
 
Eugenio Hasler’s Case 

Indeed, all the sources the Register contacted concurred that senior officials who issue instructions make the rules, which often makes them “untouchable.”  

One prominent example is the case of Eugenio Hasler, a former lay official who worked at the highest levels of the Governorate of Vatican City State, the Vatican’s principal administrative office. By all accounts a hard-working and morally upright employee, Hasler was dismissed by the Vatican in 2017 after more than a decade of service for no formal reason, and no administrative procedure was opened against him.

“He was a very good civil servant, someone who put a professional bet entirely on the system,” a former Vatican official told the Register. “It’s terrible what they did to him, a monstrous injustice.”


The son of a major in the Swiss Guard, Hasler broke his silence in April, writing on his Facebook page that he was the victim of letters written against him containing “absolutely untrue things.” In June 23 comments to the Register, he said it was “impossible” to compress his complex story into a few lines, but he recounted being summoned to speak with Pope Francis in Santa Marta. Afterwards he “never received formal accusations.”

“There was no possibility of defense, the investigations were also carried out in Italy without any formal authorization,” he explained. “I don’t have a letter of dismissal in my hand. I was basically thrown out from one day to the next on the basis of anonymous letters and accusations that I can fully deny (and which I did by writing to the Pope a few days after meeting him). I have never received a reply or a chance to defend myself.”


Former Vatican official Vik van Brantegem, who edits the website Korazym.org, has drawn attention to Hasler’s story, as has the Vaticanist Marco Tosatti.

Hasler’s position in the Governorate was highly significant “because the Vatican obtains all of its income for its operating budget from the Governorate’s operation of the Vatican Museums, the Vatican City’s ‘Annona’ supermarket, and sales at the Vatican Post Office,” noted Tosatti, who described the dismissal as  “another case of an honest, professionally prepared layman, generous in his service, thrown out because his work bothered some — or more — obscure and not very admissible interest of some prelate.”

According to Tosatti, the individual whose ambitions were responsible for Hasler’s dismissal was Msgr. Paolo Nicolini, a senior Governorate official “who controlled all of the administration of the Vatican Museums (the strongest source of income).”

Archbishop Carlo Viganò, who as the general secretary of the Governorate was Hasler’s superior around the year 2010, described him to the Register as “very honest” and the “only official able to confront” Msgr. Nicolini.
 
Similar Incidents

Other similar but high-profile cases of dismissal without reason or due process, and where the individual also received no compensation, include Ettore Gotti Tedeschi, the former president of the Vatican Bank under Benedict XVI, suddenly dismissed in 2012 as he was trying to increase transparency by implementing new anti-money laundering rules.

Despite Rome judges acquitting Gotti Tedeschi in 2015 of money laundering allegations and ruling that he was serving the good of the Church, the Italian financier said the Church remained “indifferent” to his situation. 

A more recent case is that of the Vatican’s first auditor general Libero Milone, who in 2017 said he was framed, unlawfully dismissed, and then had charges dropped against him a year later by the Vatican. Milone, who believes he was forced out because he was venturing into areas of corruption, remains without work despite an illustrious and unblemished career as an auditor and management consultant.

And most recently among a long list of similar cases was the firing in April of five officials connected with the dubious London property deal without waiting for the conclusion of their trials.    
The Register asked the Holy See Press Office if any of these former officials had received compensation or any form of restitution following their dismissals, but did not receive a reply prior to publication of this article.

The Register also asked the Vatican Secretary of State, Cardinal Pietro Parolin, for his views on criticisms of management and financial practices in the Vatican, and whether he was in favor of establishing some kind of independent personnel directorate to help protect employees’ rights, but he said he did not wish to answer.
 
What Is Needed?

The creation of such a personnel directorate — a mainstay of most corporations but absent in the Vatican — is often a solution proposed by officials and ex-officials to defend their rights as employees.

In March, the Vatican announced it had created a personnel office, only for the news to be retracted three days later, perhaps pointing to how disruptive and contentious such a department would be to longstanding management practices.

But even if such an office were put in place, not everyone is convinced it would help remove or minimize financial corruption.

“The Curia doesn’t need an adversarial employment tribunal to solve things,” said Matthew O’Brien, a Philadelphia-based Catholic analyst who advocates for financial reform in the Church. “Financial reform is not complicated.”
What is needed, O’Brien believes, is a full independent audit by the Vatican’s auditor general (a post that has been filled only temporarily since Milone’s ouster in 2017), and the “internationalization of curial staff” in the Vatican’s financial departments most susceptible to malpractice, “drawn from faithful, experienced, accomplished lay professionals.” 

Another possible reform is to remove money-managing from clergy who often have little idea of finance. “Financial management is one area where the involvement of expert, experienced, and independent laymen should be central to the Church’s practice,” O’Brien said, adding that while it is correct the Church is not a business, that argument should not be used to “rationalize an insular clericalist culture that operates without accountability, transparency, or competence.”

Pope Francis recently implemented a reform of one area of concern: how external contracts are awarded. The papal decree, issued June 1, aims to increase “transparency, control and competition” and centralize the contracting process as well as instituting rules to prevent nepotism.

Following the decree, on June 30 the Pope sought to clean up the Fabric of St. Peter, an office responsible for the conservation and maintenance of St. Peter’s basilica.

The June 1 motu proprio, widely welcomed as signaling an end to a key area of corrupt practices that were also central to the Vatileaks scandal, could mark a turning point, according to some observers, but critics say the rules could still be flouted and what is really needed is a change in personnel. They also point out that the new document only applies to the area of finance, and not management practices in general.
 
Character, Candor and Transparency

Papal biographer George Weigel told the Register that patronage cultures, including clerical patronage cultures such as the one that exists within the Curia, “too often lead to financial and other forms of corruption.” The key to any reform, he said, is not structural change even though that can “build some protections against corruption,” but rather “the character of the people chosen for positions in the Roman Curia.”

Weigel believes “no one should have anything to do with Holy See finance who has not previously demonstrated both capability and probity in dealing with money.”

Russell Shaw, a former spokesman for the U.S. bishops’ conference, said that those responsible for Vatican finances “have to understand that their first responsibility is to God” and “their second responsibility is to the Church — the people of God.” That second responsibility, he said, “absolutely requires candor and transparency on their part.”

“Like many people, I find it deeply disappointing that after promise upon promise of reform in this matter of Vatican finances, we have incident after incident suggesting that something is seriously, fundamentally wrong,” said Shaw. “I fully agree that more institutional reforms are needed. But more than that, I believe, what is most needed is a deep-rooted change of attitude — a conversion, if you will.”  

Shaw predicted that, without the transparency that derives from such conversion of attitudes, “the scandals will continue, even with the best of institutional safeguards in place.”

Edward Pentin is the Register’s Rome correspondent.

PAT SAYS

The corruption in the RCC is not only sexual.

No corruption is single faceted.

All corruption us multi faceted.

Where there is sexual corruption there is financial corruption, the abuse of power, and every other corruption you can think of.

You have it all in the RCC.

87 replies on “WHAT HAS STALLED PROGRESS IN UPROOTING THE VATICAN’S FINANCIAL CORRUPTION?”

How can seminarians take themselves seriously, knowing what we know about them and how they behave ? How can they look forward to a life of duplicity and lies, a parallel existence to what they will promise and profess ? It stinks right from day one. And, I reckon most of them know it, and are persuaded to buy in to it. They know instinctively that this will be a privileged, cosseted existence for life, with not much asked of them, and always the ability to use the clerical exceptionalism excuse. We let them get away with it…..

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Really surprised, really really suprised, that you have not seemed to have done any research, search, investigation, in fact anything at all about DM’S best friend #54 Gerard D, who DM has let swan about the world in search of Carickmacross Lace Surplices. all paid for by Silverstream Cespit.

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Pat, any updates on those sinister sounding monks from Bangor? I hope the police are helping. I hope they didn’t say something like “wise up and stop wasting our valuable time”. You sometimes hear stories, Pat, of things like that. Some police people can be somewhat impolite and brusque. A minority it is of course but all it takes are a few rotten apples.

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“Archbishop Carlo Viganò, who as the general secretary of the Governorate was Hasler’s superior around the year 2010, described him to the Register as “very honest” and the “only official able to confront” Msgr. Nicolini.” Everyone knows that Viganò is the most fanatical enemy of the Pope. Not surprising that the rightist National Catholic Register roots for one of his adepts.

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3.12 welcome! Your non-statement doesn’t even try to insinuate. On the best of days no Pope knows what is being done in his name. You claim to vaunt a figure-head. Are we supposed to think you want to look like one of those mean-minded new-fangled enforcers? We “left wingers” know who we want to trust, thank you.

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1:07, please reread 3:12. Perhaps you are confusing the leftist National Catholic Reporter with the rightist National Catholic Register?

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Where you have large sums of money sloshing around without adequate checks and balances you will have corruption. It is alleged that one of the driving forces for Brexit is the tightening of money laundering regulations by the EU, this didn’t suit the financial sector in London at all, by leaving the EU they could avoid the tightening of regulations and attract a lot of the grey money coming out of Africa which is currently being washed through Portugese banks. Have a look at ardent Brexiteer Jacob Rees Moggs career background for example.

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Does anybody remember the incident in the Vatican where there was a shooting amongst the Swiss Guard, and some sort of gay connection / lovers’ tiff etc. ? I remember from my time in Rome that there was a lot of sniffing about the Swiss Guards by older clergy – taking them out for pizzas, befriending their families, etc. etc. Most of the SG are young and chosen for their good presentation – although since the shooting apparently they are now taking in some lardy no so photogenic SG candidates ! The point I am making is that all of the malaises that afflict the Church also exist in the Vatican – sexual, abuse, financial scandal etc. – and given that the Vatican has a certain autonomy, it is difficult to get to the truth of what is really happening. I have long since given up on taking a steer from the Vatican, or indeed from bishops, because they are tainted directly or by association, and so I make my own mind up about things as best I can and in good conscience. Handing over responsibility to others and allowing them to guide you is a abrogation of personal responsibility. We know that when we peel by the various layers, those who presume to lead – priests, bishops, Vatican bureaucrats, monks, abbots etc – have very shady back lives, and are not worthy to lead or advise. We have been blind to this for too long, and look where it has got us. We need to break free.

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Any more news + Pat from the OCSOs about Purcell and what steps they are taking in the light of the deluge of revelations about his alleged behaviour ? I suspect they will revert to the usual playbook, and Purcell will go on ‘sabbatical’ for a year or so until things quieten down, and then he will reappear and they will test the waters to see if people have forgotten about it. In the meantime, he will have taken the ‘cure’ which is playing the game and saying all the right things, but there will be no radical change, and he will find other ways to engage in his alleged pursuits in the future, only being more circumspect and careful. Until he is found out again. I just wish the OCSOs and others would be open and honest and say that, yes, he has done wrong, and we are dealing with it fairly and robustly, and like in any other walk of life / profession, such is the gulf between what he is professing and what he is allegedly doing, that he will no longer be allowed to carry on as a monk and a priest. But, I doubt that will happen. It will be more fudge, more obfuscation, more lying and duplicity, and more taking us for fools !

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When Dom Richard and Fr John Walsh OP, prior of the Dominican seminary in Dublin were dining recently, were they talking of introducing age limits for new members?

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The Boilerhouse will remain closed until the 10th of October. This is in line with the current “Level 3” restrictions that have been placed on Dublin as of the 18th of September.
Please take care and play safe! Never share toys!!

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During his recent retreat in Glencairn Fr Walsh OP would have been entirely focused on matters spiritual. It’s also unlikely that the chosen destination had anything to do with its proximity to Melleray.

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If there were any distractions during J.W.’s retreat in west Waterford it would only have been to discuss some aspects of nuns’ veiling or the correct stitching on those garments which kinky Dominicans who don’t wear trousers wear under their robes.

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Father Alex Balzanella returning to Rome for further studies ? Well, I think that will be the last that Westminster will see of him, and he will find himself offered something in Rome, where they like to have the plausible and good-looking swishing around the corridors of power. Perhaps + Vincent should keep him at home and assign him to some unfashionable parish where he can get some dirt under his manicured nails and wear eau de sheep. Then he can go and do some more studies, other than in Rome, and then come back and work for the people who have paid for his extensive education. But, I doubt that will happen. + Vinny will want one of his rising stars in Rome, and bask in the reflected glory.

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You’re right. Alex wouldn’t be sent to an unfashionable parish, not in a million years. He’ll never be back. He is Vincent’s gift to the Curia, he might even end up in the Vatican diplomatic service.

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Father Littlemaniple would be good for Rome, don’t you think ? He could swish around all day, although he’d have to learn Italian. High pitched screeching in Italian – what a delight !

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“Where there is sexual corruption, there is financial corruption… “

I wonder how +Big Delia is getting on with her thorough investigation into similar allegations at Silverstream.

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VATICAN CITY (CNS) — An Italian author who was once tried and acquitted by a Vatican court for publishing leaked documents is claiming in a new book that decades of mismanagement, shady deals and decreasing donations will leave the Vatican no choice but to default. Titled “Giudizio Universale” (“Universal Judgment”), the book by Gianluigi Nuzzi includes 3,000 pages of confidential documents he claims to have collected since 2013.
In the book’s first chapter, Nuzzi recounts a May 2018 meeting of members of the Secretariat for the Economy in which they are told that “the recurring and structural deficit has reached worrying levels and risks leading to default in the absence of urgent action.”
Without radical change, Nuzzi claims, the Vatican will be in default by 2023 and, as a result, Vatican employees will lose their pensions.Presenting his book Oct. 21, Nuzzi said it is not an attack on the Catholic Church but is against the institutional corruption that has continuously impeded Pope Francis from enacting meaningful financial reforms within the world’s smallest state.
By Junno Arocho Esteves
Catholic News Service

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If one has hands laid on by SB, does one catch “leftover spirituality” and is that what makes it a “strange time”?

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Who spotted the strange goings on at Silverstream in the beginning? I’d say whoever they are they’re pretty disgusted at what happened: that one of the investigators became the investigation

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The period before 1978 normalised sexual crimes and sexually-tinted moral and emotional objectively real offences against subordinates and minors. The triple “remedy” was to move in funny money (in a bigger way), make intense sacrament worship compulsory, and deploy back channels widely, thereby quadrupling the ills.
On a completely separate note what do readers think about “reverse money laundering” – ought the police to be interested (it is intended to make rather a lot of work for them)?
The better sort of priests and bishops know what is alluded to by “widely deployed back channels” and they know that we know there is nothing they can do about it. We laity can vote by simply planting our bottoms on the pew during all ceremonies for more than the canonical 1 year and 1 day (unlike in Islam, our mere attending, should we want to, is non-binding). But anyone that “desired” to turn clergy, however decent they were at the time, has got themselves in a pickle.

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Where to begin and how far back? Judas Iscariot is a good place to start (30 pieces of silver) but try Bernardino Nogara (invested heavily in Nazi gold and weapons of war), Michael Sidona (mafia financier, very close to Paul VI when Archbishop of Milan and later as Paul VI), Luici Gelli, P2, Roberto Calvi (Blackfriars Bridge), (Archbishop Marcinkus (head of Banco Ambrosia, fugitive, wanted by Interpol, diplomatic immunity, accused of pocketing $4 million for himself), Vatican obduracy regarding signing or complying to international money laundering protocols, dodgy property deals in London (£350 million with Peter’s Pence money), purchase of gay saunas in Rome, George Pell, best lawyers in Australia to fight his case (who paid for that), Laurence Soper (jailed for child abuse, Treasurer of Benedictine order) and finally, last but not least, nothing rattles the clergy more than pertinent questions about cash and money.
Parish priests publish in newsletters the amount collected in the weekly collection or flag up a target for a fundraiser but never how much money is the parish account (current and saving).
Clerical diocesan Treasurers and the pontifical secret means they are more accountable to canon law than the law of the land – for them less where the bodies are buried more where the cash is stashed. Catherine Pepinster recently flagged up that Liverpool diocese has a reserve of £116 million – Westminster, not far behind and not to mention the Mr Gubay legacy.
Conversion of attitudes, appointing the right people etc – that’s rather like saying that the Catholic Church can self-regulate safeguarding of children – it can’t, its just window dressing and PR – they can’t self regulate either regarding safeguarding children or money.
Financial scandal will ultimately be bigger than the child abuse and cover up scandal because love of money is the root of all evil – and boy of boy do they love money!!

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9,16am. Fr Alex joins an illustrious line up of gifted pretty boys specially chosen to work in the Curia in the Vatican – Robert Murphy (Birmingham), Mark Miles (Gibraltar) and Paul Moss (Birmingham) – I wonder why that is? And to think that parishes are closing for lack of clergy – I can feel a song coming on, ‘want you back, want you back, want you back for good!’

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Moss pretty ? Spare me ? 20 years ago he was a weedy spotty thing. I doubt if there’s been any improvement since. He thought a lot of himself however.

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1.33pm. Oh dear or should that be ‘oh dearie’ I do seem to have rattled your cage!
I wonder why?
I have to agree though compared to world hunger, Covid 19, Brexit and Sasha’s Swire’s diaries on the Cameron years, the placement of gifted pretty boys in the Roman Curia against a backdrop of parish closures and shortage of clergy, is relatively superficial but nevertheless, I can’t deny, really interesting, if not amusing!
Fool, though? Really? Rather a strong accusation for such a sunny Monday afternoon. In any event doesn’t our Lord and Saviour counsel against ‘fool’ calling (Matthew 5:23 for reference!!).

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I’d love to have a job in the Roman Curia, with a nice flat in the centre of town, light duties, no pesky parishoners and hatchet-faced divorcees, a month off in the summer and surrounded by like-minded people from across the globe. Who would want to be an AP in North Harrow or Perry Barr when you could be a Mgr in Roma?

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I’m not sure they have very nice flats. Usually a little one bed thing in some nondescript block. The attraction is being in Rome, and the food, and the wine, and the culture and the style. I don’t think the work is particularly inspiring either. They are also ruthless. If your face does not fit, or you don’t make the grade, or you are not simpatico enough, then you get stuck and the only way out is back to the likes of Perry Barr. or North Harrow. Ask Mgr Sharkey of Birmingham Diocese. Perhaps he wasn’t pretty enough ? Well, yes, he wasn’t pretty enough, but that’s another thing. It sounds like a great life, but unless you get in on the fast track and go up to the nice bits, you are stuck at a desk shuffling bits of paper about some arcane matter that really doesn’t matter, living in a small flat, with not a lot of money, but admittedly in a place that is wonderful. And you can swish across St Peter’s Square anytime. Now, I know a few people that might suit ! So, Alex et al, beware what you wish for or what others are wishing for you. Think carefully.

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I thought that lower-ranking England & Wales priests working in the Curia lived in the English College? Fr Moss does.

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3.32pm Your honesty and candour is refreshing….the priesthood today – just a job (with perks) or self-giving, self-sacrificing noble vocation?

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FFS, what do you think ? Those boys ordained in the last few days know full well that the self-giving self-sacrificing noble vocation stuff is the formulaic answer when asked, but in reality they also know they have a lovely job with perks…..or at least it used to be.

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Pat, the reason for the hold up is plain as the nose on your face – nobody gives a shit about corruption and the only thing they’ll be bothered about is when it hits their pocket. Pell didn’t read the job description that he was only supposed to appear to sort it.
They won’t get in forensic accountants because then it would actually get sorted and Monsignori would be thrown to the lions.

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5.25: The voice 8f a vindictive, vengeful hater. There is more kindness in hippos shite flies than your crooked heart. Your tiresome, repeat wirds of hatred are not of CHRIST. You have written a GOSPEL according to Pat and it stinks. It is the complete antithesis of CHRIST AND HIS GOSPEL. I often wonder where God is in your life when you feel you can crucify and kill others whom you hate with your poisonous, vicious condemnations. I pray for you that you will refind GOD and be renewed IN JESUS , His Son. May our BLESSED MARY guide you to Jesus.

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Traffic is light on the old blog today, Patsy. You see they’re not really interested in the money – more drawn by the dorty shtuff.

There’s a rumour going around that the Captain had a conniption outside Cavan Cathedral yesterday at the ordination of his new bishop.

Oh Pat, I believe it was shockin’ altogether. The squeals and the bawls of her. The lads didn’t know where to look.

“It should have been meeeeeeeee!” she bellowed. “Auntie Sally promised it to meeeeeeeeee!” she wailed.

Big Sally Baptist Brady had to be sent for they say to try and talk her round. Wee Paulie had to be took home in a car to Mullagh, Pat.

Very unseemly and unbecoming at an episcopal ordination. We don’t know what’s to be done with her.

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5:33 pm
We had the same rant from you the other day minus the hippo shite flies.
What animals shite flies were on those in the hierarchy who hid child rape.

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The link isn’t working. It says Westminster Cathedral has confirmed that Boris’s son was baptised in a secret ceremony on 12 September, the weekend Boris was alleged to have been on a secret trip to Italy. It is assumed that his partner Carrie is Catholic.

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7.04pm FFS what I think doesn’t really matter does it but as you ask so sweetly – I think that for centuries the Catholic priesthood has been marketed as the supreme vocation – Gods calling – ontologically changed – persona Christi – and the priest is a special bollox – whereas if it’s just like any other job then as 7.04pm might say FFS drop the vocation shite – enough all ready.

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Do have a look at Bishop Egan’s Twitter E News. The thought for the week revolves around money…
‘The more people give, the more a parish can focus on the mission. In addition, the more people give, the more connected they feel to the parish. It creates a kind of virtuous cycle.’
Then, just below, we are greeted with a conveniently placed ‘donate’ button.
I no longer give to the Diocese and will be leaving my house to the SSPX.
If granny donates her 20quid a week, as a faithful Catholic, where does her money go?
The clue is below.
What a cheek though. The pennies of the poor built amazing churches, High Altars, statues etc torn out at Vat II. Now the clergy want more. It’s about time some of our clergy had part time jobs on the till at TESCO
The Diocese of Portsmouth is seeking a Financial Controller (12 month contract)
(Full time, 35 hours per week, Monday to Friday) based in Portsmouth
£45-50,000 per annum depending on experience plus contributory pension
Closing date for applications: Tuesday 29th September at 1300 hrs

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