The Christian Brothers, a Catholic religious order with a long history of child sexual abuse, has informed a court that it is insolvent and cannot afford to pay compensation to survivors. Court documents released on Monday reveal that the order faces up to 930 redress claims totaling an estimated $65 million, potentially leaving Australian taxpayers to cover the costs under the National Redress Scheme's 'funder of last resort' provisions.
Financial Situation and Claims
An actuarial report detailing the order's finances shows there are currently 340 redress claims involving the Christian Brothers, valued at approximately $25 million. The report also forecasts an additional 590 claims worth $40 million in future years. The order is proposing a scheme to sell its remaining 36 properties and distribute the proceeds among creditors, including survivors and the government. However, the proceeds are expected to be insufficient to cover the claims, providing only a fraction of what survivors are owed.
Government Response
Social Services Minister Tanya Plibersek has criticised the Christian Brothers for failing to take responsibility. 'Victim-survivors deserve to have those responsible for their abuse held accountable,' she said. 'Christian Brothers should take responsibility for the harm members of their order have caused.' Plibersek emphasised that the 'funder of last resort' arrangements should be an absolute last resort, and assured survivors that the government would take a 'forensic approach' to the matter.
Property Transfers and Creditor Concerns
Survivors and law firms have expressed anger that the Christian Brothers transferred vast property holdings to a separate entity, the Trustees of Edmund Rice Education Australia, for nominal amounts of $1 over the past decade. That entity is resisting attempts to sell those properties to help pay survivors. Additionally, court documents reveal that an entity called the Brothers of the Christian Schools of Ireland holds net assets of $47 million, which the Christian Brothers is attempting to fold into its proposed sell-off scheme to boost funds available to creditors.
Ongoing Support for Convicted Abusers
The Guardian has previously reported that the Christian Brothers has used its dwindling finances to support nine convicted child abusers who remain in the order, and housed brothers with horrific abuse histories in two remaining properties. One brother preyed on orphans, while another was kept in teaching positions for almost three decades after senior officials became aware of his offending.
Parliamentary Concern
Speaking in parliament, Plibersek expressed serious concern about the order's approach. 'Growing up, I was taught that there was one church and one God, not multiple corporate entities that transfer assets for purposes that are yet to be made clear,' she said. 'The feeling that no one may be held to account for this abuse – that is perhaps even worse than the financial impacts.'
In Australia, support is available for survivors through the Kids Helpline (1800 55 1800), Bravehearts (1800 272 831), and Blue Knot Foundation (1300 657 380).
