With papacy, Leo XIV inherits Vatican money troubles

The Catholic Church's economical affairs person agelong been murky and scandal-prone. Photo: JEFF PACHOUD / AFP/File
Source: AFP

Along with the spiritual enactment of the world's 1.4 cardinal Catholics, Pope Leo XIV present inherits oversight of the Vatican's shoddy finances -- and his predecessor's efforts to cleanable them up.

The dire authorities of the Holy See accounts was among the topics cardinals tasked with choosing a successor to Pope Francis discussed up of the conclave, according to the Vatican.

Their pick, American Robert Francis Prevost -- present Leo XIV -- is apt to proceed Francis's propulsion to bring immoderate order, said the president of the Vatican's bank, known arsenic the Institute for Works of Religion (IOR).

"Francis has started the process, I'm definite Leo XIV volition continue," Jean-Baptiste de Franssu, a French businessman who was appointed to the relation by Francis successful 2014 arsenic portion of a extremist overhaul of the Holy See's economical framework, told AFP.

The Vatican fills its coffers by moving hospitals, museums, and owning a immense existent property portfolio, unneurotic with donations from the faithful.

Yet, its finances regularly tally successful the red.

In 2023, it reported a consolidated nonaccomplishment of astir 70 cardinal euros ($79 million) connected gross of 1.2 cardinal euros.

The Catholic Church's economical affairs person agelong been murky and scandal-prone.

In a telling example, successful 1982 the Banco Ambrosiano -- a slope majority-owned by the IOR -- collapsed amid accusations of money-laundering mafia money.

Its director, Roberto Calvi, was recovered hanging that aforesaid twelvemonth from London's Blackfriars Bridge.

Resisting absorption

When Francis became pope successful 2013, things were not overmuch improved.

Italy's cardinal slope had precocious suspended each slope paper payments successful the Vatican implicit its nonaccomplishment to instrumentality anti-money laundering laws, and a twelvemonth earlier the US had added the tiny city-state to its database of countries of interest for money-laundering.

In 2014 Francis created a peculiar secretariat for the economy, clamping down connected corruption and stepping up scrutiny of investments.

"There was nary beardown governance, the rules were not respected, we did not person the close competence," de Franssu recalled of his aboriginal days astatine IOR.

Francis erstwhile likened the effort hole and bring transparency to the books to "cleaning the Sphinx of Egypt with a toothbrush", but the efforts produced immoderate results, including the closure of astir 5,000 fishy slope accounts.

The Vatican's estimation improved: it joined the Single Euro Payments Area and was aboriginal commended by the Council of Europe for its combat against wealth laundering.

"We person been much resistant than those that wanted to resist," said de Franssu.

Yet problems persist.

Italian Cardinal Angelo Becciu, a erstwhile advisor to Francis who erstwhile 1 of the astir almighty figures successful the Vatican, was sentenced to 5 years and six months successful jailhouse for embezzlement successful 2023.

He was 1 of 10 defendants successful a proceedings that began successful 2021 focused connected a disastrous concern by the Vatican successful a luxury gathering successful London.

The accused included financiers, lawyers and ex-Vatican employees accused of a scope of fiscal crimes successful what prosecutors called a "rotten predatory and lucrative system".

The proceedings progressive the risky acquisition of a gathering successful London's upmarket Chelsea neighbourhood, that resulted successful large losses for the Vatican.

The ungraded was peculiarly embarrassing due to the fact that Church funds utilized for specified ventures besides came from the Peter's Pence, wealth donated by the faithful for the pope's charities.

Becciu -- who was earlier removed from bureau and stripped of his cardinal "rights and privileges" and frankincense did not instrumentality portion successful the conclave that elected Leo XIV -- lodged an appeal.

Among the ongoing fiscal challenges facing Leo are a diminution successful donations from the faithful, rising unit costs and a fragile status system.

Francis said past twelvemonth the second presently "cannot warrant successful the mean word the fulfilment of the pension work for aboriginal generations".

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Source: AFP