NEWS STORY: De Roo’s Financial Decisions `Beyond Belief’

c. 2000 Religion News Service VANCOUVER, British Columbia _ A national Roman Catholic commission has concluded former Victoria, British Columbia, Bishop Remi De Roo’s bad financial decisions were “beyond belief” as he embroiled the diocese deeper and deeper in a financial “debacle” that has left it facing possible losses of $17 million. De Roo, who […]

c. 2000 Religion News Service

VANCOUVER, British Columbia _ A national Roman Catholic commission has concluded former Victoria, British Columbia, Bishop Remi De Roo’s bad financial decisions were “beyond belief” as he embroiled the diocese deeper and deeper in a financial “debacle” that has left it facing possible losses of $17 million.

De Roo, who retired last year at age 75, “exercised bad judgment and consciously circumvented” canon law when he allowed the diocese to be seduced into money-losing investments in Arabian horses and speculative land development in Washington state, the Commission of Canonical Inquiry said in an 11-page report issued June 29.


The three-man panel said De Roo and his close advisers were guilty of “very grave dereliction” when, for more than a decade, they failed to follow church law and obtain external approval of major financial moves.

Canon law says a diocesan committee must sign off on any investments over $35,000 and the Vatican must endorse any deal over $350,000.

Most of the failed deals made under De Roo’s tenure were the brainchild of the diocese’s retired chief financial officer, Muriel Clemenger. The commission said De Roo put far too much trust in Clemenger, an evangelical Christian, who, among other things, ended the diocese’s tradition of using an outside auditor when she was hired in 1982.

The commissioners said De Roo told them in an interview this spring that Clemenger encouraged him in 1997 to sign an $11 million loan guarantee for Seattle lawyer Joe Finlay on a large parcel of land in Washington state.

Clemenger said the diocese could quickly recover money it had already lost to Finlay on various horse deals.

Convinced that speed and confidentiality were necessary to secure the deal, the commission report said, De Roo “believed that following the letter of canon law would have made the deal impossible.”

Clemenger had told De Roo “the profits to the diocese would greatly outweigh the risk. In hindsight De Roo admits his trust appears to have been misplaced.”


If De Roo had not retired last year, the commission said it would have recommended his bad financial decisions be brought “to the attention of the Holy See for appropriate action.” The report also said it will take decades to repair the harm De Roo and Clemenger have done to the reputation of the diocese.

Despite its harsh condemnation of De Roo, who is well-known for his commitment to social justice causes during his 37 years as bishop of Victoria, the commission uncovered no evidence De Roo or anyone else was involved in personal corruption.

In a statement released at the same time as the report, De Roo apologized for his errors, saying he was “deeply saddened by the financial losses which occurred. Ultimately … I was responsible for the business decisions which, unfortunately, were unsuccessful.”

“While I do not agree with all the statements of the commission and its process,” he added, “I do endorse the lessons that are to be learned from this experience. In today’s world, it is almost humanly impossible for bishops to both tend to the spiritual needs of the diocese and at the same time to be first-class business administrators.”

The Victoria diocese has decided it will now use external financial advisers to vet any investment over $25,000. It will also change its statutes to ensure its money “can never again be put at risk through the bad judgment of any small group of people,” said Bishop Raymond Roussin, who has led the diocese since last year.

The diocese of Victoria, which includes almost 90,000 Catholics on Vancouver Island, has said it will sell some of its land to pay off money it owes. The diocese is also encouraging members to buy church-issued bonds so it can resolve the debts it is still responsible for on the unsold Washington state property.


The Commission of Canonical Inquiry was headed by William Broadhurt, a chancellor for the archdiocese of Toronto; Monsignor Peter Schonenbach, general secretary of the Canadian Conference of Catholic Bishops; and Father William Woestman, professor of canon law at St. Paul University in Ottawa.

DEA END TODD

Donate to Support Independent Journalism!

Donate Now!