The 25 U.S. regulatory specialists who were brought in to examine the accounts of the Vatican Bank in 2013 uncovered poor procedures for checking information, inadequate documentation, and a complex system of proxies that hid who really controlled many accounts. Two hundred accounts had serious irregularities and were sent for review to the Bank’s “financial watchdog” board (AIF). One case brought to light was an irregular 15 million euros investment by the Bank itself in a video production company, which turned into a total loss. When discovered, it caused the firing of the entire AIF “watchdog” board and its replacement with another by Pope Francis. Australian Cardinal George Pell who had for years been a vocal critic of the Vatican bureaucracy and its corruption under the two previous popes, was brought in to lead the complete overhaul of finances. It was decided the Vatican Bank was not to be closed, but instead to lose its function of managing investments. Also the Vatican secretary of state lost the power to control finances and the power went to a new ministry the Secretariat for Economy. A new asset management unit was also established. Cardinal Pell moved quickly and told all Vatican departments that for the first time in their history they had to produce quarterly reports comparing actual spending with budget expenditure. International standards of accounting and budgeting were to be used and many in the Vatican were resistant to the changes. Pope Francis placed an old friend Monsignor Battista Ricca inside the Vatican Bank to be his eyes and ears and was given authority to access all documents. When Ricca got too assertive for those resistant to change, a story was leaked to the Italian press claiming Ricca had homosexual affairs while serving as a papal diplomat in Uruguay ten year before. The Vatican denied the story, but it was assumed that Ricca would have to resign. However, Pope Francis saw this leaked story as an attempt by the conservatives to fight his bank reform program by attacking one of his key reformers. When Ricca offered to resign, Pope Francis refused to accept his resignation. When the press asked about Ricca’s gay past, Francis made the statement which has since become familiar to many: “If a person is gay and seeks the Lord and has good will, who am I to judge?” As Cardinal Pell’s reforms began to take hold, similar dirty tricks were used against him. Stories were leaked to the Italian press about his past controversial statements on clerical abuse and lies about requesting extravagant expense reimbursements. The Vatican conservatives tried to curb Pell’s powers, but Pope Francis would not allow it. He would not permit compromise to the needed financial reforms. His watchword was “fretta”, the Italian word meaning faster, stronger, more. Cardinal Pell has explained that what Pope Francis wants is to “maximize the amount of money coming in so that it could be spent on the poor and the works of the church. Because we’re trying to help people is no reason why we should be inefficient, or not transparent, or open to being robbed.”
