Catholics refute archbishop's claims about church finances

By Jolene Toves
KUAM
August 6, 2014

http://www.kuam.com/story/26208174/2014/08/06/catholics-refute-archbishops-claims-about-church-finances

Guam - "We felt compelled to speak out after the archbishop issued a statement accusing Monsignor James of financial practices that were grave and detrimental to the Archdiocese nothing is further from the truth," explained Joe Rivera. He was one of several people who participated in a press conference this morning on the steps of the Cathedral Basilica in Agana.  

It was held to respond to, correct and refute public allegations by Archbishop Anthony Apuron of financial mismanagement.

Two weeks ago the archbishop suddenly removed Monsignor James Benavente as the rector of the Archdiocese of Agana and the director of the Catholic Cemeteries. He accused him of financial mismanagement. The archbishop in a July 29th and July 31st press release cited a letter from auditors Deloitte & Touche sent in January that determined the accounting practices especially in the catholic cemeteries are "inappropriate". The firm had been working on audit of the archdiocese finance for over a year.

Even before the January letter from the auditors, however Rivera, Art Ilagan, and Rick Duenas were asked by Monsignor James to help address and implement accounting recommendations by the firm. Rivera during the press conference provided a paper trail of correspondence outlining the corrective actions they've been implementing.

For example in February Rivera wrote the archbishop that a team of seasoned and trusted accountants had been assembled to address the financial issues cited by Deloitte & Touche. He also stressed to the archbishop that "there were a multitude of problems that already existed at the Catholic Cemeteries prior to Monsignor Benavente assuming control".

"In fact," he stated, "the archbishop himself in a letter dated June 26, 2014 addressed to Monsignor James a mere six weeks ago acknowledged that much corrective action had been accomplished in that letter the archbishop based on the recommendations of Deloitte & Touche instructed Monsignor James to have the financial statement ending June 30, 2014 to be submitted by August 15 of this year."

Just today Monsignor James wrote a letter to the archbishop to respond directly to his July 31st press release listing the five specific reasons why he was removed. One of those reasons the archbishop wrote was that the Catholic Cemeteries had incorrectly included in its assets, land which was not in its own name, thus overstating its assets and using this property to secure a loan.

Monsignor Benavente responded that "before the Deloitte audit the only persons who could have known that the land was also recorded on the archdiocese books was you, as archbishop, and Deacon Dominic Kim". Monsignor James added the archbishop was absolutely wrong and that cemetery lands were never used as collateral for any loan by the Catholic Cemeteries or the Archdiocese.

Out of the five allegations made by the archbishop, Monsignor Benavente said that two had already been resolved even before Deloitte & Touches' January letter. Two others were corrected and the final one that was being worked on would have been completed before the August 15th deadline set by the archbishop. The monsignor added that because the records were confiscated by the new administration he and the financial team were unable to complete the work they had started.

It also leaves the Rivera like the rest of the catholic community questioning the real motive behind monsignor's removal. "Based on our review of the financial position of both the Cathedral Basilica and the Catholic Cemeteries it is our professional opinion that the allegation of financial mismanagement was not supported by the facts," he said.

Others who have come to the defense of Monsignor Benavente include Illagan who was present today. He is the Insurance and Banking Commissioner and a former Rev & Tax director, Rick Duenas who was also present today. He is a certified public accountant and son of former chief judge and Sir Knight Cristobal C. Duenas, Richard Untalan was also present today. He is the past chairman of the Archdiocesan Finance Council and Deacon Steve Martinez who is the former finance officer of the Archdiocese of Agana.

We should note Gerald Taitano was also at today's press conference. He is the president of the Cathedral Basilica Parish Council.

He wrote a letter to the archbishop expressing his concern that they were never informed of any financial problems and were not provided a copy of the Deloitte & Touche findings.