Catholic Order Faces Financial Ruin Over Australia Abuse Claims
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Sydney: The Christian Brothers, a Catholic religious order at the centre of Australia's child sexual abuse scandal, is on the verge of financial collapse due to rising compensation demands.
The New South Wales court has granted the order a temporary ban on civil abuse claims while it seeks permission for a creditors' plan to disperse its remaining assets. The order states that it has approximately A$216 million in assets but believes that its liabilities from abuse claims might exceed A$774 million.
The move has halted dozens of court cases, prompting outrage from survivors and lawyers who claim it delays long-awaited justice. Recent examination has also focused on previous transfers of valuable properties to Edmund Rice Education Australia, raising concerns about whether assets available for survivor payments were diminished.
The Christian Brothers say they have already spent more than A$480 million in compensation and legal costs over the last four decades, and they fear that liquidation could result in considerably smaller rewards for survivors.
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