Washington D.C., Nov 6, 2019 / 15:40 pm
Former cardinal Theodore McCarrick intervened to pressure members of the U.S. Papal Foundation to support a controversial grant request, intended to repay an illicit loan from APSA, the Vatican’s central bank. McCarrick met privately with the leadership of the bank in the months leading up to his intervention.
McCarrick made the intervention in December 2017, after objections were raised to the Vatican’s request of $25 million from the Papal Foundation, for a bankrupt Italian hospital, the Istituto Dermopatico dell’Immacolata (IDI).
The grant request from the Vatican Secretariat of State was, according to the minutes of a December Papal Foundation board meeting, first made in June 2017 as “an emergency request” from the pope, and was said to be intended to cover a short term cash crunch at the IDI.
The Papal Foundation is a charity that confers grants to charities at the request of the Holy See. Grants do not ordinarily exceed $300,000, which made the request for $25 million unusual. In autumn 2017, several board members objected to the request because they had discovered that the hospital was financially insolvent, and not merely in a short term cash crunch, as Vatican officials had led them to believe.
Among those who objected was James Longon, chairman of the foundation’s audit committee, who described the request in a memo to board members as a “disaster for the Papal Foundation. Not only is the decision process flawed, but the recipient has a dubious past.”
In early December 2017, another board member sent a letter to the entire board, raising objections to the grant request and outlining the financial problems of the IDI.
McCarrick responded to that board member by letter Dec. 14, 2017. He copied his letter to the cardinals on the foundation’s board.
“Some of your own recent actions may have caused harmful injury to the Foundation itself,” the cardinal wrote to the board member, mentioning previous incidents of “unfortunate publicity” and “division” at the foundation, and suggesting that criticism of the grant request might cause more of the same.