Vatican City, Dec 17, 2019 / 10:02 am (CNA).- For more than a year, CNA has been following a Vatican financial scandal involving a bankrupt Italian hospital, a potentially illicit loan from the Vatican’s central bank, and a controversial grant request to an American charitable foundation.
The financial scandal is one of several unfolding at the Vatican, and covered by CNA. Having trouble keeping them straight? You’re not alone. This is the first in a series of CNA explainers, designed to help you keep track of the money trails in and out of the Vatican.
Here’s the IDI scandal in a nutshell:
In 2012, an Italian hospital, owned by a religious order, went bankrupt, because its administrators had run up large debts while embezzling millions of dollars. The Vatican Secretariat of State then created a for-proft partnership with the religious order that had owned the hospital. The partnership agreed to purchase the hospital. To do so, it received – through a complex series of transactions – 50 million euro, through a loan from the Vatican central bank, APSA, despite the fact that APSA had agreed with European banking regulators not to make commercial loans.
In an attempt to take the loan off APSA’s books, officials in the Secretariat of State then asked the Papal Foundation, a U.S.-based charitable foundation, for a $25 million grant, which they reportedly requested under misleading or ambiguous pretenses. The grant was approved, but subsequent questions from board members ultimately led to controversy and opposition. The Vatican’s secretary of state, Cardinal Pietro Parolin, has said he organized the loan and the grant.
Here are the major figures and developments in the ongoing story of the IDI hospital:
IDI hospital – The Istituto Dermopatico dell’Immacolata (IDI), an Italian dermatological hospital. After a series of embezzlement scandals drove the hospital into bankruptcy, it was purchased by a for-profit partnership created between the Vatican’s Secretariat of State and the religious order that had owned and managed the hospital.
IOR – The Vatican’s commercial bank, also known as the Institute for Religious Works, or the Vatican Bank. In 2015, the IOR rejected a request for a 50 million euro loan to a for-profit partnership created between the Vatican Secretariat of State and a religious order with the intention of purchasing the bankrupt IDI hospital. IOR board members determined that the hospital would never be able to repay the loan.
APSA – The Vatican’s central bank, similar to a federal reserve. Under 2012 European regulatory agreements, APSA cannot make commercial loans. However, after the IOR in 2015 rejected a 50 million euro loan request to purchase the bankrupt IDI hospital, APSA approved the loan, raising questions of whether it violated European regulations in doing so. Officials with the Vatican Secretary of State then asked the U.S.-based Papal Foundation for a grant to help remove the loan from APSA’s books. That grant fell through, and APSA has now reportedly written off most of the loan.
Papal Foundation – A U.S.-based group that gives grants to causes endorsed by the pope, often in developing nations and typically of $300,000 or less. The Papal Foundation was asked in June 2017 for a $25 million grant to help with a temporary cash shortage at the IDI hospital. The funding was initially approved, with cardinal board members who supported the grant outnumbering lay board members who opposed it. However, some lay board members continued to object to the grant, questioning whether it was actually intended to cover the bad APSA loan. Amid increased scrutiny, the grant collapsed. $13 million of the grant has already been paid, which the Vatican Secretary of State now says is being treated as a loan that will be repaid through discounts against future grant requests.
Cardinal Angelo Becciu – Formerly the number two official at the Vatican Secretariat of State. Multiple Vatican sources have told CNA that Becciu, along with Cardinal Giuseppe Versaldi, was key in organizing the effort to acquire the IDI hospital and to pressure the Papal Foundation into approving a $25 million grant to help offset the potentially illicit APSA loan, removing it from the books. Becciu denies any involvement, saying he had lost interest in the project by the time of the Papal Foundation grant.
Cardinal Pietro Parolin – Vatican Secretary of State. Parolin told CNA that he was responsible for arranging the 2014 loan of 50 million euros from APSA, the Vatican’s central bank, to partially fund the purchase of the bankrupt IDI hospital. He said the arrangement was “carried out with fair intentions and honest means,” although the loan appears to violate 2012 regulations prohibiting APSA from making commercial loans. He also said that he had devised a plan, along with Cardinal Donald Wuerl, to ask the U.S.-based Papal Foundation for the money to cover APSA’s bad loan.
Theodore McCarrick – Former cardinal who has now been laicized for sexually abusing minors. McCarrick met with the secretary of APSA in July 2017. He later pressured lay board members of the Papal Foundation to support the grant, suggesting that questioning the Vatican funding request was inappropriate and would challenge the integrity of the foundation itself.
Cardinal George Pell – Former head of the Prefecture for the Economy, charged with overseeing the Vatican’s financial accountability. In this role, Pell reportedly objected to the APSA loan to buy the IDI hospital. After lobbying from Becciu, Pope Francis withdrew oversight authority of APSA from Pell’s office in 2015. Pell is currently in prison in Australia, convicted on controversial sex abuse charges, which he is appealing.
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From the back bleachers, yours truly humbly proposes that “a balanced synthesis between the laws of God and the dynamics of man’s conscience and freedom” respects the immutable and inviolable moral absolutes against intrinsically evil acts, as elaborated in “Veritatis Splendor,” combined with exercise of the moral virtues for matters which are not absolute.
Two points:
FIRST, with regard to such moral absolutes along with God’s infinite mercy, “…the commandment of love of God and neighbor does not have in its dynamic any higher limit, BUT (Caps added) it does have a lower limit, beneath which the commandment is broken” (n. 52).
SECOND, regarding other and more problematic matters, still governed still by the moral virtues (courage, temperance, justice and especially prudential judgment), and mostly the responsibility of those directly accountable for the common good, we can turn to the Catholic Social Teaching as synthesized, already, in “The Compendium” (2004). And, which might be organized to better effect into, first, the always central “transcendent dignity of the human person” and then, second, the following binaries:
(1) Solidarity & Subsidiarity, always together; (2) Dignity of the human Person & Family; (3) Rights & Responsibilities; (4) well-formed Conscience & faithful Citizenship; (5) Option for the Poor & the dignity of Work; (6) Personal Property & intergenerational care for God’s Creation.
SUMMARY: Town hall “synodality” is not enough, and Cardinal Fernandez (Fiducia Supplicans) is too much.
A balanced synthesis . . ? Hopefully an error in translation of the Pope’s words.
Isn’t this universe, world, & our human species (according to The New Testament witness) subject to the Stoikheia – that is the tenant Principalities, Powers, Dominions, Rulers, Authorities, Governments, & Thrones that reject GOD’s authority, self-identifying as “a whole host of evil in high places”.
Aren’t The Church’s many problems caused by melding with these intrinsic evils?
Isn’t the Christ-given work of The Church to confront ‘the ways of the world & its prince’ with our Holy Spirit-anointed radical obedience to & our persevering proclamation of GOD’s holy commandments; whilst not counting the cost . . ?
Now, that’s a challenge young Catholics will respond to – if given half a chance!
“Be calm but vigilant, because your enemy the devil is prowling round like a roaring lion, looking for someone to eat.”
“Think of the love that The FATHER has lavished on us, by letting us be called GOD’s children; and that is what we
A balanced synthesis . . ? Hopefully an error in translation of the Pope’s words.
Isn’t this universe, world, & our human species (according to The New Testament witness) subject to the Stoikheia – that is the tenant Principalities, Powers, Dominions, Rulers, Authorities, Governments, & Thrones that reject GOD’s authority, self-identifying as “a whole host of evil in high places”.
Aren’t The Church’s many problems caused by melding with these intrinsic evils?
Isn’t the Christ-given work of The Church to confront ‘the ways of the world & its prince’ with our Holy Spirit-anointed radical obedience to & our persevering proclamation of GOD’s holy commandments; whilst not counting the cost . . ?
Now, that’s a challenge young Catholics will respond to – if given half a chance!
“Be calm but vigilant, because your enemy the devil is prowling round like a roaring lion, looking for someone to eat.”
“Think of the love that The FATHER has lavished on us, by letting us be called GOD’s children; and that is what we are. Because the world refused to acknowledge Him, therefore it does not acknowledge us.”
“No created thing can hide from Him; everything is uncovered & open to the eyes of The One who to whom we must give an account of ourselves.”
“A balanced synthesis?”
About a year ago a friend thought to balance my bookshelf by unloading seven volumes of the complete works of St. Alphonsus de Liguori (1926!), lifted many years ago from a real pastor who passed away in 1988. I need to spend some time with this…
Thinking about “God’s mercy” and turning almost randomly to Part I of “The Way of Salvation and of Perfection,” we find many dozens of Meditations, including VIII: “The abuse of God’s Mercy”:
The reader is counseled to avoid both despair and presumption [….]. Second, “God is merciful, but he is also just [….]. Then third, “God is not mocked [….] The hope of those who commit sin because God is forgiving, is an abomination in his sight: their hope, says the holy Job, is an abomination [much in italics].”
Any “synthesis” conforming to “the spirit of St. Alphonsus Maria de’ Liguori” will be a daunting and sobering task, given the 3,000 pages of unambiguous fine print such as this.
SUMMARY: Not much here on “time is greater than space.”
A presumption there is a synthesis. If we’re addressing Hegel’s thesis antithesis synthesis it’s argued that Hegel does not give evidence of using the formula in any of his works (see Leonard F Wheat in Undiscovered Thesis-Antithesis-Synthesis Dialectics).
Intelligence in Man is not distinguished by level rather by kind. Among animal species only man can make the following comparative distinctions: 1. universal and particular 2. one and many 3. union and separation 4. essence and existence 5. divine and human 6. inner and outer 7. in itself and for itself 8. potential and actual 9. unconscious and conscious 10. artificial [man-made] and natural 11. God and man. 12. Father and Son Jesus (Wheat).
The proposition of synthesis poses a presumption these appositional parings can be synthesized. Except for the Father and Son Jesus. If we take a moral principle [principle here replaces absolute] can we modify it to satisfy its opposite and retain a morally acceptable compromise? For example communion for divorced and remarried. If using Amoris Laetitia as a guide can we retain the precept Adultery and allow communion – even if based on mitigating circumstances? Is that not accommodation rather than synthesis?
It seems Pope Leo’s premise “balanced synthesis’ between God’s law, human freedom” cannot satisfy both principle/precept and freedom. A solution is found when it’s shown as given the example of Alphonsus Ligouri that a famished man secretly taking fruit from someone’s orchard is not stealing because life or death presents a right. Whereas taking another man’s wife for sensual fulfillment presents an evil. The natural law that undergirds our conscience tells us that.
Leo XIV has made a terrible decision to open up doctrinal moral principles for discussion in reaching a synthesis with human freedom – in a regional Bogotá setting attended by a cadre of Redemptorist lecturers, professors from Columbia, a handful from elsewhere – with immense repercussions [particularly doctrinal fragmentation] for the universal Church.
Leo, a canon lawyer, must be aware that what occurs regionally by a group of unknowns [despite the heady title International Congress of Theologians] with his papal sanction will be taken elsewhere as the rule or at least the option, and for other such regional discussion of doctrine.
Hegel, when addressing thesis antithesis synthesis, theorized these dynamics in reference to the history of nations and cultures. Not to definitive moral principles.
These secular philosophers also know their ruminations including dialectics are taken as rules and options for other things beyond the initial application.
Becoming popularized or well spread it takes on bulk or immenseness sometimes personalized or “authored” and in general through “autonomous” anonymity.
Thanks, dear Fr Dr Peter Morello for illuminating what appears to be yet another crafty scheme to deceive & manipulate The Church towards blatant denial of GOD’s strict but benevolent instructions, that enable us to live a life of Grace.
Ps 118 “How shall we remain sinless? By obeying Your Word.”
“I have sought You with all my heart: let me not stray from Your commands”
“I treasure Your promise in my heart, lest I sin against You.”
“Blessed are You, O LORD, teach me Your statutes.”
Not to dismiss your analysis–which applies especially to the past twelve years–my proposition is that a synthesis of the Hegelian vintage is not possible if attempted within the spirit of St. Alphonsus Maria de Liguori. Which is why I used the terms “daunting and sobering.”
Thomists celebrate Aquinas’ “synthesis” of Faith and Reason, and this direction is clearly not Hegelian. With you, I would prefer if Leo XIV had used the better term “coherence” instead of synthesis, which was preferred by Benedict XVI.
A Hegelian outcome would/will (?) be out of step with Liguori. That’s my point–a not-entirely-subtle invitation for theologians to consider that what the magisterium upholds about God and human freedom is not “rigid, bigoted, fixistic and backwardist.”
Agreed.
Although Peter, Faith and Reason cohesive by nature [as God ordained] are not two opposing premises. God’s Law and human freedom are opposed. Unless we attribute freedom to following God’s Law. Which is not a true synthesis. The phrasing by Leo XIV means freedom from God’s Law.
Although Peter, Faith and Reason cohesive by nature [as God ordained] are not two opposing premises. God’s Law and human freedom are opposed. Unless we attribute freedom to following God’s Law. Which is not a true synthesis. The phrasing by Leo XIV means freedom from God’s Law.
Faith is a gift. Reason a natural faculty. Neither are opposed although differ, both compliment the other.
“God’s Law and human freedom are opposed”?
“It follows that the authority of the Church, when she pronounces on moral questions, in no way undermines the freedom of conscience of Christians. This is so not only because freedom of conscience is never freedom ‘from’ the truth [!] but always and only freedom ‘in’ the truth [!], but also because the Magisterium does not bring to the Christian conscience truths which are extraneous to it; rather it brings to light the truths which it ought already to possess, developing them from the starting point of the primordial act of faith” (St. John Paul II, “Veritatis Splendor,” 1993, n. 64).
“God’s Law and human freedom are opposed. Unless we attribute freedom to following God’s Law”.
By ordained nature the will is not opposed to God’s law. By tendency due to original sin it is opposed.
Jesus Christ is the balance between the laws of God and the dynamics of man’s conscience and freedom.
“It brings to light the truths which it ought already to possess, developing them from the starting point of the primordial act of faith” (St. John Paul II, “Veritatis Splendor,” 1993, n. 64).
John Paul is not precise in this diagram in reference to the natural law within, that prescient knowledge that all men possess realized in the act of apprehension of good from evil. ‘We do not require grace to apprehend this law within’, which law is a reflection of the divine law. That is why all men are subject to judgment if they commit intrinsically evil sin. It is this natural law that undergirds conscience. Insofar as freedom it belongs to the will. Which is why Aquinas holds, evil is in the will.
Faith enlightens the intellect regarding natural law and strengthens the will to observe the law. Whereas revealed knowledge of heroic virtue required for salvation are not found by reason, rather they are gifts of the Holy Spirit, knowledge of which and adherence by grace surpass Man’s natural capacity.
A correction to “John Paul is not precise in this diagram”. John Paul is likely focused on the baptized who are certainly recipients of grace at baptism, and other non baptized to whom God wishes to confer grace – all of whom would be subject “to [the] light [of] truths which it ought already to possess, developing them from the starting point of the primordial act of faith”.
“Balanced synthesis”? The corruptions going on in liturgy said to be according to VATICAN II the pastoral Council, are not pastoral.
At least, this sounds properly Papal –
‘The interview appears in the Spanish-language book “León XIV: ciudadano del mundo, misionero del siglo XXI” (“Leo XIV: Citizen of the World, Missionary of the XXI Century”), a biography by Crux correspondent Elise Ann Allen, published on Sept. 18 in Spanish by Penguin Peru. English and Portuguese editions are expected in 2026.
In the book, Pope Leo, a longtime missionary in Peru before he was pope, underlines that the Church’s primary mission remains spiritual, not political.
“My role is announcing the good news, preaching the Gospel,” he said. “I don’t see my primary role as trying to be the solver of the world’s problems. I don’t see my role as that at all, really, although I think that the Church has a voice, a message that needs to continue to be preached, to be spoken and spoken loudly.”’