Vatican Investigating Movement of $17 Million to Investment Fund

The Associated Press has reported that the Vatican is investigating the transfer of $17 million from the U.S. branch of a Church mission to an investment fund. Pope Francis has instructed his aides to investigate the matter further.

The Vatican is investigating the movement of millions of dollars from a Church mission to an investment fund.

Highlights

By Catholic Online (NEWS CONSORTIUM)
6/1/2023 (1 year ago)

Published in Americas

Keywords: Vatican, Catholic, investment, 17 million, fund, money

The transfers primarily occurred in 2021 when the board of directors of the Pontifical Mission Societies U.S.A. (TPMS-US) approved the movement of at least $17 million to a nonprofit organization and its private equity fund. These entities were owned by the organization's then-national director, Father Andrew Small, OMI.

TPMS-US is the U.S.-based arm of the Pontifical Mission Societies, a global network of four societies that offer financial support to the Catholic Church in mission territories, particularly in Africa. Most of the funds are raised through an annual donation drive in Catholic churches in October.

As an official instrument of the Holy See and the pope, TPMS-US operates under the pontifical organization.

While serving as the national director of TPMS-US in 2014, Father Small established the nonprofit Missio Corp. and its private equity fund, MISIF LLC, under TPMS-US. These entities were separately incorporated in 2018.

After ten years leading TPMS-US, Father Small assumed the temporary secretary role in the Vatican's Pontifical Commission for the Protection of Minors in 2021. He also continues to serve as the president and CEO of Missio Corp., which operates Missio Investâ€"an impact investing fund that provides financing to agribusinesses, health and education enterprises, and Church-run financial institutions in Africa.

According to the latest audited financial statement, the new national director of the mission group, Monsignor Kieran E. Harrington, and the new board of directors have written off $10.2 million of the transferred amount as a loss. The statement indicates that there is no specified timeline or guarantee of investment return, but efforts are being made to redeem the investment.

Father Small criticized the decision to write off the investment as "shortsighted" and expressed confidence that there will be a return on the investment after the minimum 10-year commitment.

Vatican spokesman Matteo Bruni stated to AP that the Holy See is aware of the situation and is currently examining the details of the events.

Experts interviewed by AP stated that the transfers might not necessarily be illegal. However, concerns were raised due to Father Small's simultaneous leadership roles in TPMS-US and Missio Corp., as the former handles donations from the faithful while the latter provides loans.

AP reported that, according to financial statements, TPMS-US requested the $10.2 million investment in MISIF back from Missio Corp., but the request was denied.

In response to questions from AP, Father Small explained that the money transfers from TPMS-US to Missio Corp. and MISIF were approved by the board and were in the best interest of the Church. He also shared letters from bishops and religious sisters in Africa who benefited from Missio Corp.'s low-interest loans.

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AP revealed that TPMS-US changed the composition of its board of directors, mostly comprising cardinals and bishops, after Monsignor Harrington assumed leadership in spring 2021. Harrington also hired a law firm to investigate Missio Corp.

The board of TPMS-US is currently reassessing its governance structures and will propose new statutes and vote on civil corporation bylaws.

Furthermore, AP reported that a portion of the money transferred to Missio Corp. and MISIF LLC was intended for the renovation of a former monastery in Rome, which was acquired by the Vatican in 2021 to serve as a dormitory for women religious studying at pontifical universities. However, the monastery remains unoccupied.

Father Small stated to AP that, for various reasons, the TPMS-US board decided to allocate the $4.7 million to Missio Corp. instead of Rome, to fund the training of sisters in Africa.