Wednesday, May 30, 2012

Vatican leak investigation widens

A special commission of cardinals investigating the worst crisis in Pope Benedict's pontificate is hunting possible accomplices to his butler, held since his arrest in a 'safe room' in the Vatican police station.
The scandal exploded last week when within a few days the head of the Vatican's own bank was abruptly dismissed, the butler was arrested and a book was published alleging conspiracies among cardinals, the "princes of the Church".

"I can confirm that a number of people have been heard or interrogated and naturally this is something that can continue because we are still in the investigative phase," spokesman Father Federico Lombardi said today.

Fr Lombardi denied that any cardinals were suspects in a scandal over leaked documents that has rocked the very top of the Roman Catholic Church since the arrest last week of butler Paolo Gabriele (46).

Vatican investigators are still sifting through documents found in Mr Gabriele's home, which Fr Lombardi told a briefing likely included printed and electronic material.

He would not say how many documents were found because the information was covered by judicial secrecy.

But Mr Gabriele's lawyer yesterday denied Italian reports that huge amounts of confidential material were found hidden in the butler's home.

Mr Gabriele was formally charged with aggravated theft on Saturday when a preliminary inquiry that began with his arrest was upgraded to a formal investigation.

The butler, who was one of the people closest to the pope, will face Vatican magistrates again later this week or next when formal hearings start.

"This touched the pope very closely and created a situation of pain. Naturally he wants to know the truth and (determine) the correct interpretation of these events," Fr Lombardi said.

The Vatican says the powerful cardinals commission "can decide to hear anyone they think might have information in this case".

While denying reports that the butler was merely a pawn in a larger power struggle among clerics in the Holy See, the Vatican has acknowledged that the affair would test the faith of Catholics in their Church.

"Clearly this is a grave situation," Fr Lombardi said, adding that the Vatican was not afraid of "problems, difficulties, or even errors or blame".

Documents leaked to journalists over several months allege corruption in the Church's vast financial dealings with Italian business.

Italian newspapers, quoting other whistle blowers in the Vatican, said the arrested butler was merely a scapegoat doing the bidding of more powerful figures, punished because the Church did not dare implicate cardinals behind the leaks.

The leaks scandal has touched the secretariat of state led by Cardinal Tarcisio Bertone, the pope's powerful right-hand man, with Italian media saying the affair appears to involve a struggle between his allies and enemies, reminiscent of Renaissance conspiracies inside the Vatican.

Mr Gabriele's lawyers said their client, who is being held inside in a "safe room" in the Vatican police station – the Vatican has no jail - would cooperate fully with investigators.

Critics of the pope say a lack of strong leadership has opened the door to infighting among his powerful aides – and potentially to the corruption alleged in the leaked documents.

Many Vatican insiders believe the butler, who had access to the pope's private apartment, could not have acted alone.

Now known in Vatican statements as "the defendant" - he was until Wednesday night the quiet man who served the pope's meals, helped him dress and held his umbrella on rainy days.

The Vatican's announcement of the arrest of the butler came a day after the president of the Vatican bank, Italian Ettore Gotti Tedeschi, left the bank after a no confidence vote by its board of external financial experts, who come from Germany, Spain, the United States and Italy.

Gotti Tedeschi's ousting was also a blow to Cardinal Bertone, who as secretary of state was instrumental in bringing him in from Spain's Banco Santander to run the Vatican bank in 2009.

The Vatican bank, officially known as the Institute for the Works of Religion (IOR), was set up during the second World War to manage the accounts of Vatican agencies, church organisations, bishops and religious orders.

It has been involved in financial scandals, most notably in 1982 when it was embroiled in the collapse of what was then Italy's largest private bank, Banco Ambrosiano, with more than a billion dollars in debts.

Banco Ambrosiano's chairman Roberto Calvi was found hanged under London's Blackfriar's Bridge.

In September 2010, Italian investigators froze millions of euros in funds in Italian banks after opening an investigation into alleged money laundering involving IOR accounts.

The bank denies any illegal activity.

The Vatican is trying to make the IOR more transparent and join an international "white list" of countries that comply with international safeguards against money laundering and fraud. 

A decision on that application is expected within months.