Catholic charity in turmoil over a huge grant to dodgy hospital

Catholic charity in turmoil over a huge grant to dodgy hospital February 21, 2018

The US-based Papal Foundation exists to ‘to build the Church, educate and prepare leaders, and care for the most vulnerable people, young and old, around the world’ – but a grant it made, ‘without due diligence’ to a corrupt Church-owned hospital in Rome has left the organisation reeling.
According to this LifeSite report, Pope Francis himself requested a $25-m grant for the Istituto Dermopatico dell’Immacolata (IDI), which stands accused accused of money laundering, and $13-m of that amount was handed over. Records from the financial police indicate the hospital has liabilities over one billion USD – an amount larger than the national debt of some 20 nations.

Lay members of the Papal Foundation are reportedly “up in arms”, with some tendering resignations over the grant.

According to leaked documents, the Pope made the request for the massive grant, which was 100 times larger than its normal grants, through Papal Foundation board Chairman Cardinal Donald Wuerl, above, in the summer of 2017.
Despite opposition from the lay stewards,  the bishops on the board voted in December to send the $8 million payment to the Holy See. In January, the documents reveal, lay members raised alarm about what they consider a gross misuse of their funds, but despite their protests another $5-m was sent with Cardinal Wuerl brooking no dissent.
On January 6, the steward who until then served as chairman of the Foundation’s audit committee submitted his resignation along with a report of the committee’s grave objections to the grant. He said:

As head of the Audit Committee and a Trustee of the Foundation, I found this grant to be negligent in character, flawed in its diligence, and contrary to the spirit of the Foundation. Instead of helping the poor in a third-world country, the Board approved an unprecedented huge grant to a hospital that has a history of mismanagement, criminal indictments, and bankruptcy.

He added:

Had we allowed such recklessness in our personal careers we would never have met the requirements to join The Papal Foundation in the first place.

The audit committee chairman’s report noted that the Foundation’s initial $8 million was sent without any supporting documentation.
He said the board eventually received a “2-1/2 inch thick binder of information (mostly in Italian)” but it lacked essential details. The report noted:

There was no balance sheet.  There was no clear explanation as to how the $25 million would be used. Normal grant requests are fairly specific about how our money will be used. Buried in the thick binder was only a one-page financial projection labelled “Draft for Discussion” showing:

2017   1.6 million Euro PROFIT
2018   2.4 million Euro PROFIT
2019   4.4 million Euro PROFIT

The Chairman said:

And on this data, our Board of Directors voted to grant this failing hospital $25 million of our hard-earned dollars. To put this in perspective, rarely have we given above $200,000 to a grant request. I pointed out that there was NO PROFESSIONAL DUE DILIGENCE, just a lot of fluff.
If the numbers presented were accurate, then this commercial enterprise should go to a bank.  They don’t need our money.  If the numbers were not accurate, then a decision could not be made.

The hospital has been plagued with corruption and financial scandal for years. On May 15, 2013, ANSA, the leading news wire in Italy, reported:

Police confiscated over six million euros worth of property and bank accounts as part of investigations into alleged corruption at the Italian hospital group Istituto Dermopatico dell’Immacolata (IDI).

The news of Vatican financial corruption connected to the IDI hit international headlines in 2015 with a June 20 Reuters article showing the Italian magistrates suspected that Vatican Cardinal Giuseppe Versaldi diverted 30 million euros earmarked for a Church-owned children’s hospital to the IDI.
Another ANSA piece from 2016 reported:

Finance police discovered IDI was 845 million euros in the red and 450 million euros in tax evasion while 82 million euros had been diverted and six million euros in public funds embezzled.

In May 2017, La Repubblica reported on court rulings revolving around the IDI detailing twenty-four indictments, leading to a dozen convictions, some of which carried over three years in prison. The court recognised the evidence from the financial police including:

About 845 million euros in balance sheet liabilities and over 82 million in diverted funds, plus the undue use of another 6 million public funds.

Wuerl, in a “PF Stewards Report”, explained to unhappy stewards that the $25 million the Pope wanted for the hospital was made:

In the larger context of the Holy Father’s commitment to confront and eliminate corruption and financial mismanagement both within the Vatican itself and in outside projects with which it was involved or sponsored.

On January 19, after numerous calls and emails among lay members supporting the audit committee’s position, the Foundation’s executive committee sent a letter that tried to placate donors.
The document, sent by Foundation President Bishop Michael Bransfield, and signed by Cardinal Wuerl, Cardinal Timothy Dolan, as well as several stewards on the executive, said the request for the donation came directly from Pope Francis. They wrote:

We have worked in conjunction with the Pope from the very beginning. We don’t approve every request he makes, but he is the Pope, and we listen to him, and we listen intently.

Lifesite provided links to the leaked documents here, here and here. The last is particularly damning.

"What kind of Christian would kill Christians and restrict them? Or what kind of Jew ..."

‘Jesus chicken’ company denies homophobia but ..."
"I don't know, I'm not the one who can read the minds of long dead ..."

‘Jesus chicken’ company denies homophobia but ..."
"Yes and Hitler was also a Jew yet did he try to kill himself? It ..."

‘Jesus chicken’ company denies homophobia but ..."
"I have spoken the truth ut you refuse to accept it."

‘Jesus chicken’ company denies homophobia but ..."

Browse Our Archives

Follow Us!

What Are Your Thoughts?leave a comment
  • AgentCormac

    ‘Blessed are you who are poor.’
    Luke 6:20-21
    The rcc today is so detached from the ideals its leader apparently espoused that should he miraculously return tomorrow morning I very much doubt he would recognise a single connection with it.

  • StephenJP

    What is interesting is that so few of us are shocked. We have come to see this as par for the course for the RCC: that self-enrichment and corruption are endemic. Take a step back, and it seems incredible that this organisation should be allowed to get away with what it does, and even more so that the rest of the world should continue to afford it diplomatic status and immunity.
    @AgentCormac, if JC really existed (which I doubt) and came back today, there is a hell of a lot that he wouldn’t recognise, starting with the very hierarchy of the churches. There’s no mention of bishops or archbishops in the Gospels or in any of the very few authentically early NT books, and especially no reference to Popes!

  • Steve

    Corruption in a church run institution?!
    Hang on, I’ll just put on my “surprised” face.

  • Robster

    Bunch of crooks in dresses? Absolutely.

  • 1859

    Ugly story about an ugly organisation – the RCC – the Spiritual Mafia.

  • Gary

    I doubt an army of independent accountants could ever unscramble the financial shambles of the rcc. But I bet my last dime that it wouldn’t take overlong after lifting the lid off the silo of worms to discover thousands of criminal megabuck irregularities. After all the true purpose of the rcc is to use threats of hell fire to extort money. The rcc is a global criminal organisation riddled with criminals cheating not only congregants and whole governments but themselves too. It’s a criminal organisation built of criminal organisations all ripping each other off. And they rape children too.

  • Broga

    I speculate that there is an interesting situation with the RCC. The gullible faithful believe without question and hand their money over to the priests. The priests do not believe (some do) and are as atheistic as I am and happily take the cash.
    Evidence for the priests not believing in an omniscient God: they have sex with men and women,, child sex abuse is endemic, they steal money. Does this suggest belief in an all seeing, judgemental God?

  • Gary

    MONEY is the RCC GOD. That’s it. And it comes with all those other must haves for criminals. POWER. Sex on DEMAND. Property. CONTROL over governments and law enforcement agencies.

  • barriejohn

    Once again when I opened my email this morning I had loads of notifications from this site, all except one referring to posts made over the past couple of days and already read by me! Is this only happening to me, and if so what can I do about it? TIA

  • Stephen Mynett

    We have a catholic who comments fairly regularly on this site, I wonder if he would like to explain why he stays loyal to such an odious group.

  • andym

    Again just the sort of scandal erupts which Francis was appointed specifically to keep hidden or at least divert attention from. Not only that , he’s directly implicated. He’s about as secure as Theresa May,only in office because to remove him looks bad, and the alternatives to him look even worse. But at some point they’ll have to get rid of him,one way or another.

  • Lucy

    Because of ‘only rotten apples’
    Because however temporarily bad, the church’s needs come first
    Because ‘ours not to reason why’
    Because ‘humble faith ‘
    Because ‘real catholics’ aren’t like this
    I could go on

  • L.Long

    MONEY & POWER are the gawds of ALL religions…
    fixed it for you Gary

  • Broga

    Stephen Mynett : Perhaps the RC copes by the system that I heard about when I quoted biblical contradictions to a Christian who insisted that every word of the bible was true. I kept it simple and just referred to a couple of verses where the numbers were different. My argument was that one, at least, must be wrong, and therefore everything was suspect.
    Knockout out punch? Yes. No chance. It was like water off the backs of the ducks on our pond. She said that if I read the bible “prayerfully” I would find no contradictions. So, if priests sexually abuse children and steal money “prayerfully” no crime is committed.

  • sailor1031

    The only surprise in this tawdry tale of RCC Inc fraud and conversion of funds is that after seventeen hundred years of assuming the position and taking it from the pope where the sun don’t shine, lay catholics still believe that they have any influence whatever on the actions of the dons of this crime syndicate.
    “Real Catholics”, read some history FFS. Start with the Banco Ambrosio affair.