Potentially inappropriate asset transfers could deprive Christian Brothers abuse survivors of pay, government tells court
The Guardian – World
theguardian.com
Summary
Concerns Catholic order’s historical transfers of millions in assets were potentially inappropriate, NSW supreme court hears Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast Lawyers for the federal government say they are concerned at the “disturbing” potential that the Christian Brothers Catholic order may have inappropriately transferred property to another entity years before claiming it was broke and couldn’t afford to pay abuse survivors’ civil claims. The New South Wales supreme court on Thursday ordered a moratorium on all abuse claims against the Christian Brothers, a Catholic order that played a significant role in the church’s child sexual abuse scandal . The Christian Brothers sought the moratorium because the order said it was going broke and wanted to establish a separate scheme to sell off its remaining property and divide the proceeds between a range of creditors, including survivors. The Christian Brothers estimates it owes $774m to survivors with current or future abuse claims against it. It says it has 36 remaining properties worth $216m under its control. The moratorium will give time for survivors to consider whether to support the Christian Brothers’ proposal. But significant concerns have emerged about the way the Christian Brothers has transferred property – land, school buildings and homes around the sites of its former schools – out of its control to another entity, Edmund Rice Education Australia, over the past decade. Property records obtained by the Guardian show those transfers were made for $1 each, even in cases where they involved multimillion-dollar homes in Sydney. EREA, named after the founder of the Christian Brothers, was established as an independent entity in 2007 to assume control of former Christian Brothers schools. In a hearing before the NSW supreme court, Sera Mirzabegian SC, representing the commonwealth, said the federal government was “concerned to ensure that institutions take responsibility for abuse [and] that they provide appropriate compensation”.
From the source
‘Obviously disturbing’ if Catholic order’s historical sales of millions in property for $1 results in lack of money for victims, NSW supreme court hears Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast Lawyers for the federal government say they are concerned at the “disturbing” potential that the Christian Brothers Catholic order may have inappropriately transferred property to another entity years before claiming it was broke and couldn’t afford to pay abuse survivors’ civil claims. The New South Wales supreme court on Thursday ordered a moratorium on all abuse claims against the Christian Brothers, a Catholic order that played a significant role in the church’s child sexual abuse scandal . Continue reading...
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Published by The Guardian – World on theguardian.com
