Anglican Church juggles loans to pay sex abuse victims
Pastor Dale Morgan
*Anglican Church juggles loans to pay sex abuse victims*
By Jeremy Roberts
October 24, 2006 01:00am
Article from: The Australian
AUSTRALIA - THE Anglican Church in Adelaide is set to radically
reorganise its financial structure to repay a multi-million-dollar loan
used to compensate more than 70 alleged victims of pedophile church workers.
Church insiders speculate the cost of the new debts could be as high as
$17 million, a burden that has triggered the financial overhaul to be
adopted at the church's synod next weekend and revealed publicly on Friday.
In the past four years, the Adelaide archdiocese has been rocked by
repeated child sex abuse scandals dating back to the 1960s.
Archbishop Jeffrey Driver - who took up the job a year ago - was the
driving force behind a $4.5 million settlement of legal cases with more
than 30 victims of former church youth worker, the late Robert Brandenberg.
But the church is yet to settle with a group of more than 40 alleged
victims of other church workers.
The cost of the abuse claims, legal fees and full-time professional
standards staff appointed to modernise complaints-handling is expected
to grow significantly.
Archbishop Driver refused to be drawn on the overall size of the debt
burden - which includes a principal loan and interest - but said $17
million was too high.
He said he did not expect the diocese to pay more than $9 million in
upfront compensation payments for the victims of Brandenberg and the
group of more than 40 other alleged victims yet to settle.
Negotiations were stalled because of the death of a senior lawyer for
the diocese.
Synod documents circulated ahead of the meeting - which is the governing
body for the local church - show that Archbishop Driver aims to overhaul
the financial structure of the diocese.
An explanatory note to members of the synod says the reorganisation of
the church's business structure "must take account of the changed
financial needs of the synod to fund the interest and principal
repayments on the 10-year loan commitment undertaken this year".
Included in the overhaul will be the merging of two managed funds, which
combined have more than $40 million in funds under management. The
merger will "further grow the funds and enhance returns", according to
the synod explanatory memo.
To raise funds, the tennis court at the historic archbishop's residence,
in exclusive North Adelaide, has been put up for sale. It is estimated
to be worth up to $2 million.