“operation Resignation” Aims to Bring about a Rebirth of the Ior

By Andrea Tornielli
Vatican Insider
July 3, 2014

http://vaticaninsider.lastampa.it/en/the-vatican/detail/articolo/35048/

“There are no power struggles, nor is the president Ernst Von Freyberg being kicked out. What is going to be taking place over the next few days is an operation led by the Secretary for the Economy, Cardinal George Pell, aimed at bringing about a real reform of the IOR.” An authoritative source who has been informed about what is about to happen to the IOR’s leadership, said this in a statement to Vatican Insider. The source confirmed that what has been stated in the news in recent days regarding the replacement of the IOR’s head, is true. However, the reason for this change is the “Vatican bank’s” much-needed facelift in terms of transparency. Professional figures and required skills also need to be changed in order to bring the reform process forward.

The IOR’s current board was nominated in 2009 and will complete its mandate at the end of the summer. This also applies to President Freyberg who was selected to carry on Ettore Gotti Tedeschi’s mandate. But the imminent replacement of the Institute’s current administrative council and president is not down to new problems within the bank or to its bad management. The decision to ask the entire board to resign - not just because its member’s mandates are about to come to an end or because of the advanced age of some members – was allegedly Cardinal Pell’s idea. The reason behind this, is apparently to reshape the IOR to fit the broader framework of Curia reform.

The Institute for the Works of Religion will increasingly resemble a small bank with limited deposits, that deals with bank transactions (which are very useful for the world’s religious institutes) and will significantly limit its investments. Hence the board and the president will have to have experience in managing banks more than big financial investments. The board could thus resign within the next few days, allowing Pell and the commission of cardinals in charge of overseeing the IOR, to select a new team that responds to the new needs of the IOR.

So the possible changes the IOR faces are not down to problems relating to the current board’s management and the work that Von Freyberg and the administrative council have been carrying forward over the past sixteen months – i.e. monitoring the “bank’s” accounts, implementing anti-money laundering regulations, continuing the “bank’s”communication strategy and the publication of the first certified financial statements - will continue.