Victim-survivor 'devastated' by Christian Brothers compensation shortfall

Lead

The Christian Brothers order in Oceania has proposed selling off its remaining assets, valued at around $216 million and comprising about 36 properties across Australia, to compensate victims of abuse at its institutions. The move comes as the order faces hundreds of claims from survivors, and the proposal must be approved by at least 50% of creditors, who will include both current and future victims. The order says the sale will mark its end, but schools established by the order will be unaffected because they are owned by a separate entity, Edmund Rice Education Australia (EREA).

The proposal has drawn sharp reactions from survivors and their lawyers, who say it amounts to the order trying to evade its obligations. One lawyer, Laird Macdonald, who represents several victims, accused the Christian Brothers of attempting to 'squib' on compensation payments. A survivor, Peter Buchanan, a Victorian, said the move was 'unconscionable' and the Church should step up to cover any shortfall.

Coverage Comparison

Reporting of the story has been led by Australia's public broadcaster, ABC Australia, and The Guardian, with both outlets covering the announcement and its fallout. ABC Australia's reports have focused on the proposal itself, the order's financial position, and the reactions of victims and lawyers. The Guardian has delved into allegations that the Christian Brothers may have attempted to hide assets, reporting on internal church property records and transfers of wealth to Edmund Rice Education Australia.

While the two outlets broadly align on the basic facts, they differ in their emphasis. ABC Australia has carried a more neutral tone, focusing on the mechanics of the proposal and the victims' personal responses, whereas The Guardian's coverage is more critical, highlighting claims of asset transfers at nominal prices and the implications for survivors. The Guardian also quoted a spokesperson for Attorney-General Michelle Rowland, who said the government 'takes any alleged attempts by institutions to hide assets from victims of child sexual abuse extremely seriously.'

Key Claims

The central claim is that the Christian Brothers is seeking to sell its assets to pay abuse victims, who will become creditors under a proposed scheme. The order has stated its assets are valued at approximately $216 million, but admitted this will not be enough to cover all compensation claims, both current and future.

A lawyer representing multiple victims, Laird Macdonald, accused the order of trying to 'squib' on payments. He is quoted in ABC Australia's reporting, stating that the proposal came as a shock to his clients and calling it an 'unprecedented step'.

The Guardian's reporting brings up a related set of claims about asset transfers. According to church property records obtained by that outlet, the Christian Brothers has transferred 'vast wealth' – including land, school buildings, and multimillion-dollar homes – to EREA for $1 each over the past decade. Those assets, according to EREA, will not be sold to help survivors. The same report includes a proxy adviser, named as Peter, Dean Paatsch, estimating the transferred property could now be worth up to $2 billion. EREA's financial reports indicate it received transferred land worth $891 million.

Lawyer Jodie Harris, partner at Arnold Thomas & Becker, which has 78 claims against the Christian Brothers, said her firm would scrutinize the transfers with 'laser focus.' She says survivors are concerned that the brothers are again trying to protect themselves at the expense of their lives that have been devastated.

Perspectives

Christian Brothers (as reported by ABC Australia)

The order acknowledged its financial position as 'pivotal' and maintained that the proposed scheme was the most responsible course. It said its assets would not be enough to pay the full compensation, and the scheme must be approved by 50% of creditors.

Victims and their lawyers (as reported by ABC Australia and The Guardian)

Survivors and their legal representatives accuse the order of trying to avoid its obligations. They express distress and call for the Catholic Church to cover the shortfall, as in the case of Peter McDonald.

Government (as reported by The Guardian)

The Attorney-General's spokesperson stressed the government's seriousness in addressing any attempts to hide assets from victims of child sexual abuse.

Edmund Rice Education Australia (as reported by The Guardian)

According to The Guardian, EREA stated that the transferred assets will not be sold to help survivors.

Perspectives

This section is omitted because the material does not include two or more distinct perspectives that are directly attributed to named parties within the provided coverage.

Key Claims

• The Christian Brothers is seeking to sell off its assets to pay compensation to abuse victims, with assets valued at around $216 million.
• The proposal requires approval from 50% of creditors.
• The order has paid more than $480 million in compensation and costs to claimants since 1980.
• Lawyer Laird Macdonald accused the order of trying to 'squib' on payments.
• The Guardian reported that the order transferred assets to EREA for $1 each, and that these assets are not to be sold to help survivors.
• The Guardian reported estimates of the transferred property being worth up to $2 billion, with $891 million received in land as per EREA's financial reports.

Conclusion

The Christian Brothers' proposal to sell off assets to compensate victims has ignited criticism from survivors and lawyers who suspect the order of attempting to shirk its responsibilities. The plan's approval will depend on creditor votes, but the scrutiny of the transfers to EREA adds a layer of complexity. The order maintains that its action is the most responsible route given its financial position, but victims and their representatives expect the church to do more.