Pope Begins Reshaping Vatican’s Financial Management

Pope Begins Reshaping Vatican’s Financial Management

The creation of an auditor general post is the latest example of how Francis is confronting management problems.

 



ROME — Pope Francis on Monday announced a major restructuring of the Vatican’s outdated administrative and economic bureaucracy as he established an agency to oversee budgets and financial planning and also created a powerful post of auditor general to guard against fiscal mismanagement.
The changes are the latest example of how Francis is moving to confront management problems in the Vatican as part of his broader mandate to overhaul the Roman Curia, the administration that runs the Holy See. He has begun shuffling personnel while also speaking out against careerism in the Roman Catholic Church, especially inside the Vatican.
To lead the new agency, the Secretariat of the Economy, Francis selected Cardinal George Pell, the archbishop of Sydney, who is also one of eight cardinals serving on a special commission advising the pope on administrative overhaul and other issues. Shortly before Francis was elected pope last March, Cardinal Pell was openly critical of mismanagement under Pope Benedict XVI — in particular a scandal over private letters leaked by Benedict’s butler.
“It would be useful to have a pope who can pull the show together, lift the morale of the Curia and strengthen a bit of the discipline there,” Cardinal Pell told The Associated Press at the time.
One question that remains is the fate of the Vatican Bank, officially known as the Institute for the Works of Religion. Magistrates in Italy are investigating allegations of money-laundering linked to the bank. Meanwhile, a management team, appointed by Benedict in the final days of his papacy to address the problems, has been poring over the bank’s accounts, looking for irregularities, while also working to bring the institution into compliance with international norms.
Francis has not yet signaled his plans for the bank — one possibility would be to shut it down — and the announcement on Monday did not mention it.
“We have not yet heard any decisions or deliberations,” said Max Hohenberg, a spokesman for the bank.
But Alberto Melloni, a historian of the Vatican, said the latest changes signaled a further diminution of the bank, which once operated with independence and limited oversight, factors that contributed to the recent scandals. He said the bank would now serve essentially as “a wallet,” while economic decision-making would be made in the new Secretariat of the Economy. He also said the appointment of Cardinal Pell underscored the growing influence of the “Group of Eight” cardinals over functions once dominated by the Curia.
Francis has pledged to bring greater transparency and collegiality to the workings of the Vatican, and the announcement on Monday said the secretariat was created to help “simplify and consolidate existing management structures and improve coordination and oversight.”
The new auditor general, to be directly appointed by the pope, will be “empowered to conduct audits of any agency of the Holy See and the Vatican City State, at any time,” the Vatican said.
COPY  http://www.nytimes.com/

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