Redress backflip after Christian Brothers cry poor
A deal has been reached to prevent Australian taxpayers from being forced to pay financial compensation for exploiting victims of a Catholic sect facing bankruptcy.
In June, the Christian Brothers Board of Trustees said the organization would be bankrupt by September and would be unable to pay compensation to hundreds of survivors of abuse.
The registered charity and legal entity has announced a proposed plan to distribute its remaining assets, worth approximately $216 million, but there are no plans to cover the cost of future claims.
On Friday, trustees notified creditors that they had signed a memorandum of understanding with the Edmund Rice Education Australia (EREA) Board of Trustees to develop and implement a new plan that will ensure payments are made to all current and future victims and survivors.
“This means that not only will existing claimants with settlements or judgments be paid in full, but EREA will also assume responsibility and liability for all current and future legal proceedings as well as claims before the National Redress Scheme,” it said in a statement. The statement was included.
“Again, as with the previous proposal, the revised plan must be approved by both creditors and the court.”
There were concerns that Australian taxpayers could be expected to cover the $65 million shortfall if the organization was unable to find funding.
“Taxpayers should not have to intervene to compensate victims of crime in a situation where the responsible institution is easily identifiable and has significant wealth,” Social Services Minister Tanya Plibersek told parliament on July 2. he said.
There were reports in recent years that the Christian Brothers handed over their most valuable college in Australia to Edmund Rice for just $1.
At least three leading schools in NSW and three others in Victoria were reportedly transferred to the trust for the nominal price of $1 each.
These schools charge between $8000 and $23,000 annually.
Over the past 45 years, the group has paid out more than $480 million in total, including damages and plaintiffs’ legal costs.
Members of the Congregation of Christian Brothers first arrived in Australia in 1843 and ran institutions where many of Australia’s most notorious cases of child sexual abuse took place.
1800 RESPECT (1800 737 732)
National Sexual Abuse and Resolution Support Service 1800 211 028
