By Jueseppi B.
Nunzio Scarano, who served in the Administration of the Patrimony of the Apostolic See, has been arrested after he apparently helped friends bring 20 million Euros into Italy. Vatican spokesman Lombardi says the Vatican is prepared to cooperate with the judiciary.
Less than forty eight hours after it was announced that Francis had ordered the setting up of a commission to inquire into the activities of the IOR, the Vatican bank has come under the media spotlight again, following the arrest of Italian monsignor Nunzio Scarano, who had been working for APSA (the Administration of the Patrimony of the Apostolic See).
Two others were arrested as well: Italian policeman Giovanni Maria Zito, who was dismissed from the Italian secret services three months ago and broker Giovanni Carenzio. They are accused of corruption, slander and fraud. The arrest was made as part of the inquiry that is being carried out by the Public Prosecutor’s Office in Rome, into the activities of the IOR. Public Prosecutors Nello Rossi and Stefano Fava have been leading the three year investigation into the violation of anti-money laundering regulations by the IOR’s director general Paolo Cipriani and deputy director Massimo Tulli.
Mgr. Scarano, a former banker who became a priest 27 years ago, apparently agreed to pay 400 thousand Euros to have 20 million Euros in cash brought into Italy on a private jet. According to Scarano’s lawyer, the money was in fact transported on a State-authorised flight and the prelate only acted as a go-between.
The money belonged to one of his friend’s families. But the monsignor was also placed under investigation by the Public Prosecutor’s Office of his home city, Salerno, last 13 June, on charges of money-laundering. The investigation is being led by Public Prosecutor Elena Guarino and looking into the illegal transaction of money via cheques worth 10 thousand Euros each. Although accounting records show these as donations to help settle debts accumulated by a property in Salerno, it is suspected the transactions were part of a money laundering operation. In 2009, Mgr. Scarano withdrew 560 thousand Euros in cash from his IOR bank account, claiming it went towards paying off a mortgage.
Although this latest inquiry is into transferrals to and from the prelate’s Vatican bank account, it is not yet clear what role, if any, the IOR played in Rome’s inquiry into the 20 million Euros brought into Italy by plane. After the news broke about the inquiry being carried out by the Public Prosecutor’s Office in Salerno, Mgr. Scarano was suspended from his Vatican position. The director of the Holy See Press Office, Fr. Federico Lombardi said: “As is known, Mgr. Scarano was suspended from APSA over a month ago.” The Holy See has not yet received any request for information from the Italian authorities in charge of the case but offers its full cooperation,” the spokesman added.
As prosecutors try to work out who is responsible for what, what is clear is that the intrigues, fulfilment of personal interests and the possibility of using the IOR illegally, are not just a thing of the past but have continued into the present. So Pope Francis’ drastic decision is understandable, as is the IOR’s failure to reassure him – with statements to the press – about the good work it is doing.
(ROME) — The director of the embattled Vatican bank and his deputy resigned Monday following the latest developments in a broadening finance scandal that has already landed one Vatican monsignor in prison and added urgency to Pope Francis’ reform efforts.
The Vatican said in a statement that Paolo Cipriani and his deputy, Massimo Tulli, stepped down “in the best interest of the institute and the Holy See.”
Cipriani, along with the bank’s then-president, was placed under investigation by Rome prosecutors in 2010 for alleged violations of Italy’s anti-money-laundering norms after financial police seized 23 million euro ($30 million) from a Vatican account at a Rome bank. Neither has been charged and the money was eventually ordered released.
But the bank, known as the Institute for Religious Works, or IOR, has remained under the glare of prosecutors and now Francis amid fresh concerns it has been used as an offshore tax haven.
Last week, a Vatican accountant was arrested as part of Rome prosecutors’ broadening investigation into the IOR. Monsignor Nunzio Scarano is accused of corruption and slander in connection with a plot to smuggle 20 million euro ($26 million) into Italy from Switzerland without reporting it to customs officials.
Scarano, dubbed “Don 500″ by the Italian media because of his purported favorite euro banknote, acknowledged under questioning Monday that his behavior was wrong but that he was only trying to help out friends, attorney Silverio Sica told The Associated Press.
According to wiretapped phone conversations, Scarano was in touch regularly with both Cipriani and Tulli to get the required bank approval to move large amounts of cash into and out of his IOR accounts. Scarano had two such accounts: a personal one and one called “Fondo Anziani” to receive charitable donations for projects to help the elderly, prosecutors say.
In addition to his Rome arrest, Scarano is also under investigation in the southern city of Salerno for alleged money-laundering stemming from a 560,000 euro cash withdrawal he made from his IOR charity account in 2009. Sica, the attorney, has said Scarano arranged complicated transactions with dozens of other people and eventually used the money to pay off a mortgage.
The group of five cardinals overseeing the IOR accepted the resignations of Cipriani and Tulli and tapped the IOR’s current president, German financier and aristocrat Ernst von Freyberg, to serve as interim director, a Vatican statement said.
Von Freyberg, who was named IOR president in February following the clamorous ouster last year of Italian banker Ettore Gotti Tedeschi for incompetence, thanked Cipriani and Tulli for their years of work and said much progress has been made in recent years to bring greater transparency to the Vatican’s finances.
“While we are grateful for what has been achieved, it is clear today that we need new leadership to increase the pace of this transformation process,” von Freyberg said in a statement.
Italian banker Rolando Marranci was named as acting deputy and another banking expert, Antonio Montaresi, has been brought into a new position as chief risk officer to help ensure the IOR complies with anti-money laundering and anti-terrorism norms. Both belong to the Promontory Group, an expert in the field of anti-money laundering which has been retained by the IOR to help it comply with international norms.
The IOR’s board has begun the process of finding a permanent director and deputy director, the statement said.
The Vatican bank was founded in 1942 by Pope Pius XII to manage assets destined for religious or charitable works. Located in a tower just inside the gates of Vatican City, it isn’t open to the public — only to Vatican employees, religious orders and diplomats accredited to the Holy See.
Last week, Francis announced a commission of inquiry into the bank’s activities and legal status to ensure it is in “harmony” with the Catholic Church’s mission. It’s part of his overall reform effort of the Vatican bureaucracy, mandated by the cardinals who elected him pope in March.
The reason for concern about the IOR is well-founded: The bank has long been the source of some of the greatest scandals of the Holy See, famously implicated in a scandal over the collapse of the Banco Ambrosiano in the 1980s, in one of Italy’s largest fraud cases.
Roberto Calvi, the head of Banco Ambrosiano, was found hanging from Blackfriars Bridge in London in 1982 in circumstances that still remain mysterious.
Banco Ambrosiano collapsed following the disappearance of $1.3 billion in loans the bank had made to several dummy companies in Latin America. The Vatican had provided letters of credit for the loans.
While denying any wrongdoing, the Vatican bank agreed to pay $250 million to Ambrosiano’s creditors.
The late Archbishop Paul Marcinkus, an American prelate who headed the Vatican bank at the time, was charged as an accessory to fraudulent bankruptcy in the scandal, but Italy’s Constitutional Court eventually backed the Vatican in ruling that under Vatican-Italian treaties Marcinkus had immunity from Italian prosecution. Marcinkus long asserted his innocence and died in 2006.
- UPDATE 1-Top Vatican bank managers resign after monsignor’s arrest (uk.reuters.com)
- Fraud At Vatican Bank Results In Arrest Of Priest , Others (youviewed.com)
- Priest arrested in Vatican bank probe (vanguardngr.com)
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