Matthew O’Brien argues that former Cardinal Donald Wuerl misled the Papal Foundation’s board of directors in obtaining a major grant. He also suggests that the purpose of the extraordinary grant may have been to help then-Cardinal Theodore McCarrick win leniency from the Vatican as his sex abuse investigation was taking place:
In 2017, Cardinal Donald Wuerl provided false and misleading information to the board of the Papal Foundation to secure a $25 million grant for the Istituto Dermopatico dell’Immacolata (IDI), a scandal-plagued hospital in Rome.
Vatican Secretary of State Cardinal Pietro Parolin requested this grant from the Papal Foundation in June 2017, on behalf of Pope Francis. When the Papal Foundation board met in December 2017 to discuss the grant, Wuerl made two false assertions which were recorded in the meeting minutes. First, he claimed that the Italian religious congregation that oversaw the IDI’s descent into insolvency through fraud and embezzlement (the Congregation of the Sons of the Immaculate Conception) was no longer involved with the IDI. Second, he understated the amount of debt encumbering the IDI and its affiliates since the hospital group emerged from state-administered insolvency proceedings in April 2015. He painted a picture of a hospital that was experiencing momentary cash-flow problems, but was otherwise sound.
But the Congregation of the Sons of the Immaculate Conception was not separated from the IDI. It retains indirect ownership today, in partnership with the Vatican’s Secretariat of State, through the non-profit Fondazione Luigi Maria Monti and a limited liability subsidiary, Luigi Maria Monti, S.r.l. Together they own and operate the IDI and its affiliates. Moreover, IDI’s debt was far greater than Wuerl suggested: Though Wuerl mentioned that the IDI group owed $26 million in payables, he did not mention that it also owed $60 million in mortgage debt. Because Wuerl resisted lay board members’ requests to obtain financial statements from the IDI hospital, the Papal Foundation board had to rely upon Wuerl’s remarks about its ownership and financial situation when evaluating the $25 million grant request.
Wuerl’s actions are especially questionable in light of what he knew at the time about then-Cardinal Theodore McCarrick’s interest in securing the grant. The Holy See, Wuerl, and McCarrick—an ex-officio member of the Papal Foundation board—knew that McCarrick was at the time under investigation in New York for sexually abusing a minor, according to two sources with personal knowledge of the situation. Wuerl was aware that McCarrick stood to win leniency in his sex abuse case if the Papal Foundation secured $25 million for the Vatican’s Secretary of State.
Wuerl’s actions roiled the Papal Foundation’s donors and lay board members. Several people involved with the Foundation spoke on background for this article and shared copies of Foundation meeting minutes and legal reviews. Shortly before Wuerl resigned from the chairmanship of the Foundation’s board at the end of 2018, he orchestrated a change in its bylaws that decreased the already limited influence of lay board members by shortening their terms of service.
Today Wuerl remains a member of the Papal Foundation’s governing board of cardinals. As one of just two American members of the Congregation for Bishops at the Vatican, Wuerl oversaw the recent appointment of his successor to the Archdiocese of Washington, D.C., Archbishop Wilton Gregory. Gregory too serves alongside Wuerl on the Papal Foundation board.
The sex abuse scandal rocking the Catholic Church is not just about sex. Nor is it just about clericalism. It’s also about money. The controversy over the Papal Foundation’s $25 million grant reveals how sexual abuse, its cover-up, and money are intertwined.
The Papal Foundation was founded by Cardinal McCarrick. And the Papal Foundation’s typical grant amount is not $25,000,000, but rather $100,000.