29 January 2022

The Vatican Bank Scandals: New Developments and Unanswered Questions

https://cruxnow.com/vatican/2022/01/court-upholds-ruling-against-two-ex-managers-of-vatican-bank

A Vatican appellate court has upheld the conviction of two clerics in a corruption and money laundering scandal that dates back almost a decade.

Does this represent a slap on the wrist or a sign of real reform in the notoriously corrupt and scandal-ridden institution?


The sum of the penalty is quite large but as they can't be expected to pay tens of millions of Euros personally, it may have no functional meaning. The money will either be pulled from other accounts or more likely, not paid back at all. The sale of the property involved could restore some of the funds but would most likely fall short of full restitution.

Is this yet another case of Francis making enemies or is it a token action? Are these clerics being 'thrown under the bus' or are they the scapegoats, the two figures selected to be toppled allowing the others (presumably in the dozens, and perhaps the real architects) to escape? We don't know and given that these proceedings are internalised, we won't be privy to them apart from some future leak.

It's not clear how much Francis is even personally involved. If there are sinister machinations at work in this limited and somewhat cryptic proceeding, it may be forces other than Francis within the Curia that are making their move and making the call.

In terms of real reform vs. token actions, in reality it's probably a bit of both.

Malta and Luxembourg have been mentioned as the sites hosting funds that were used for real estate purchases – transactions apparently underwritten by the Vatican. This is not fraudulent in itself but if the deals were rotten to begin with and transparently so, then someone knowingly pledged the money. Given that Malta and Luxembourg are also associated with money laundering, there are other questions regarding the nature of these transactions.

The bank took the losses – was this some kind of internal corruption? Were these clerics paid off? Were they blackmailed? Is organised crime involved? None of this is new territory when it comes to the Vatican Bank.

We can only hope that more will be revealed and yet if the Vatican itself is thrown into existential crisis and Francis doesn't intervene – he will likely be in danger. If he does intervene to save the institution and clamps down on information getting out and hampers the ability of international prosecutors to pursue the crimes – then his enemies have won. He wants to reform an institution that effectively cannot be reformed – at least not too quickly and not in the open.

But the longer the scandal drags on, it provides yet more fodder, another occasion for the enemies of the Vatican to point to the larger institution as a moral and spiritual cesspool – which it certainly is.

See also:

https://pilgrimunderground.blogspot.com/2021/02/the-latest-clampdown-on-ior.html

https://pilgrimunderground.blogspot.com/2019/01/accountability-at-vatican-bank.html

https://pilgrimunderground.blogspot.com/2019/10/ior-obstruction.html

https://pilgrimunderground.blogspot.com/2019/04/orlandi-and-vatican-scandals-of-1970s.html

https://pilgrimunderground.blogspot.com/2018/01/italian-masonry-and-mafia.html

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