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THE DIRECTOR AND deputy director of the Vatican bank have resigned amid a sweeping probe of the scandal-hit institution.
Paolo Cipriani and Massimo Tulli handed in their resignations “in the best interest of the institute and the Holy See”, the Vatican said in a statement, just days after a senior Catholic cleric who held accounts at the bank was arrested in Italy for alleged corruption.
The shock resignation of top management came amid a probe into the Institute for Works of Religion (IOR), as the bank is known, carried out under the scrutiny of Pope Francis himself.
“Since 2010, the IOR and its management have been working hard to bring structures and processes in line with international standards against money laundering,” the bank’s president Ernst von Freyberg was quoted as saying.
“While we are grateful for what has been achieved, it is clear today that we need new leadership to increase the pace of this transformation process,” he added.
The Vatican said von Freyberg would “assume the functions of the General Director ad interim with immediate effect” and a new position of “chief risk officer” would be created to help the bank comply with international financial regulations.
The bank has a troubled history, including the collapse of the Banco Ambrosiano, in which the Holy See was the main shareholder, and which had been accused of laundering money for the Sicilian mafia.
The chairman of Banco Ambrosiano, Roberto Calvi – dubbed “God’s Banker” in the press – was found hanging from Blackfriars Bridge in London in 1982 in a suspected murder by mobsters.
In 2011, Pope Benedict XVI created a new financial authority to reform the bank, with the aim of getting the Vatican on a “white list” of countries that cooperate with efforts against money laundering drawn up by the Organisation of Economic Cooperation and Development (OECD).
But critics complained that his approach was toothless and many had been hoping Francis would overhaul the highest rungs of the institution.
In a bid to tighten control of the bank’s activities, the pope last week set up a special five-member commission, which is under orders to investigate the bank and report anything it uncovers directly to him.
In the latest scandal to hit the Vatican, Italian police on Friday arrested senior cleric Nunzio Scarano, 61, on suspicion of plotting to smuggle millions of euros into Italy.
Scarano is accused of planning, together with an Italian spy and a financial broker, to secretly fly €20 million in dirty money into Italy from Switzerland, purportedly as a favour for shipping industry friends.
The cleric, who had worked for years as a senior accountant for the Administration of the Patrimony of the Apostolic See (APSA) and is currently being held in Rome’s Regina Coeli prison, on Monday pleaded his innocence and requested to be transferred to house arrest or somewhere he can celebrate mass.
The Vatican promised in 2011 to redouble its efforts to reform the bank and overhaul its financial legislation following reports of anonymous accounts at the bank being used by organised crime.
In February this year, it named German von Freyberg as the bank’s new head, and he is currently overseeing a review of its 19,000 or so accounts.
The IOR, which does not lend money, manages assets of €7.0 billion euros ($9.3 billion) and handles funds for Vatican departments, Catholic charities and congregations as well as priests and nuns living and working around the world.
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Need identified in 1978, built 2017, sums up Ireland.
@Irish_Bond: Don’t forget, named after a saint, in a secular republic.
@Irish_Bond: spot on. And Sean Fitzpatrick found not guilty after 9 years. This country is a joke!
@Irish_Bond: what was the issue with the demonstrators until 2015?
@lavbeer. For the love of all that’s holy delete your comment or the whole thing will kick off again..
@Irish_Bond: and the counselor wants it closed… Truly too many people living in the stone age
@lavbeer, there has been a campaign against this scheme and bridge ever since it was first suggested by the council. Public consultation is filed under ‘bin’ by our non elected county executive.
@David Vaughan: It’s actually named for St Francis Abbey, the old Smithwicks Brewery as the bridge directly accesses the site which is under redevelopment.
@Irish_Bond: same with the limerick tunnel. It was talked about for 20 years before being opened. Same with the ennis bypass. That opened in 2007 but was talked about since 1990. However the record for talking and not doing goes to blakes corner in ennistymon!!
@WJ Dunphy: One Councillor (Joe Malone ff) said the naming of the bridge after St Francis was welcome boost for the Catholic Church and hoped that the pope would consider visiting it because of their shared name!
The bridge was identified as necessary in 1978 the serve the cattle mart (now moved out of town) and the Smitwicks brewery (now closed) so now we have a river crossing that brings all large vehicles trying to get to the other side of town right through the heart of a town that depends almost exclusively on tourism. Well done.
@Larry Doyle: TII
@john culhane: this is ireland
@Larry Doyle: Spot on , if i could give 100 green thumbs i would.This 40 year old plan plan was concieved ln a time when bring more traffic into the city centre was seen as a good idea.That is no longer a good model and kilkenny should be moving towards more pedestrianisation the city centre rather than more cars.I think this scheme will be looked back upon like wood quay in Dublin , a terrible idea forced through by a short sighted council.
Pure insanity not completing the ring road, that would have not only taken the traffic out of town but would have served easy access to 3 hospitals with massive traffic (St.Lukes, Aut Even and Kilcreene) as well as allowing all the trucks and lorries servicing chancellors mills and other large business to bypass densely populated areas instead of bringing these massive trucks straight through the butts housing area!!
A whole article about a bridge but no picture of said bridge.
@Liam Coyle: Get over it
@Matty Kineven: I’ll try if I’m there again.
@Liam Coyle: That’s because it’s an eyesore.
……on the Nore!
Should never been built , the new set of traffic lights on the castlecomer road within 30 yards of the existing junctionis crazy.I have passed through there several times and the the traffic has been backed up through the barrack street junction.The narrowing of the junction on to vicar street is also crazy.Its actually dangerous and its hard to believe someone planned it
@Robert Woodward: It is unbelievable that the local council had no traffic plan whatsoever for the project. Local councillors flip flopped on their opposition and support of the folly project that was well outdated and a complete waste of money.
Absolutely mind blowing why Vicar Street is not one way coming out of town to Greens Bridge. Traffic at a standstill from Vicar Street up to the Freshford Road
Totally out of character with one of Ireland’s most beautiful cities.
Councillor Noonan, of the Green Party, is unlikely to be in favour of a new road, is he.
@P.J. Nolan: He is in favour of completing the much needed Ring Road
@Larry Doyle: I think you will agree Larry that even the dogs on the street wouldn’t have agreed to this either.
@Patrick Corr: Absolutely
The Eyesore on The Nore
Dreadful waste of money, the completion of the ring road would have sorted much more of the traffic problems in Kilkenny, rather than just one side of the city. HGVs still passing through residential areas and beside schools on the western side of the city.
Ugly monstrosity.
An insult to Kilkenny’s medieval history.
Shame on those who approved this.
@Diarmuid: Polls were done of the local population for this. The comparison of those for the bridge was overwhelmed by those against. The majority wanted the local ring road completed to divert traffic away from the city. But alas ignorance and stubborness prevailed. Hence the protests that took place.
A bridge too far!
As French and European observer and know very well kilkenny.. I don’t think this urban project has a real purpose to develop the city and serve his population for a better life.
Investor will be happy. I am sure about it .
Would I remind that if you go deep to the archive of local newpaper. Mr Hogan say that 40 millions was allocated for the completion of the Ring so why they did not finish since ?
Irish builder / engineer has reputation for the craic but they do not to work and plan like german. ! No vision ! & Tax his local people. Kilkenny is safe by her castle and craft and pubs for tourisme but Council do not say that they let die plenty local business !!!!! and bring the big brand ! Nice….. Some are even not Irish but American. Yes EU is perverse !
Kilkenny is the only town where they bring traffic first to city center !!!! No Sense. Look what Cork did ? Kilkenny must have is star take off now for the non ecologic town !
Why this bridge ?
This is purely for make money and Tax payer will pay the bridge and local business of course. Ask them . They will back up …
2 sites the Old Mart who move to The hub (Outside the town) and free the huge area, then Guinness who bought Smithwicks and let go 300 people then resell the site name : DIAGO to the Kilkenny council. Then Kilkenny who sold it to financial investor for x years with condition to make profit ! What a brick at brack ! .
The bridge has been built for one reason only . Increase the value of the 2 sites and intract investor…and bring brand business…
Tesco would love to come but by chance , they have been kick off !
For history information. Smithwicks request a bridge during they full activity but the council at the time : Say No !!! . No they gone and they build a bridge for what ? Traffic ? Local people ask to complete first the Ring.
Against why this portion of ring road was not complete. Dig the archive and plan and you will know who live there ! You will understand..
This is very poor public management from council and I would say politics !
The things it’s that all local decision are decided by the capital and his parties and brown envelop anywhere . Corruption !
They don’t care a penny for their people !
OUT !
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