Court documents released in Australia reveal that taxpayers may be forced to cover substantial compensation payments to victims of abuse by the Christian Brothers, a Catholic religious order, if the organization becomes unable to meet its financial obligations.
An actuarial report indicates the Christian Brothers currently faces 340 redress claims valued at approximately $25 million through Australia’s government-run national redress scheme, which provides capped compensation to survivors without requiring court proceedings. The report projects an additional 590 claims worth $40 million may be filed in coming years, bringing the total to 930 claims valued at $65 million. Under the rules of the redress scheme, the federal government functions as a “funder of last resort,” meaning it must cover compensation when an institution ceases to exist or lacks sufficient funds to pay.
The Christian Brothers has proposed selling its remaining 36 properties and distributing proceeds among creditors, including survivors and the government. However, the sale proceeds are expected to fall substantially short of covering survivors’ claims. Survivors and their legal representatives have expressed frustration that the organization transferred significant property holdings to a separate entity, the Trustees of Edmund Rice Education Australia, for nominal amounts during the past decade, with that entity now resisting property sales to fund compensation.
Australian Social Services Minister Tanya Plibersek stated the government would examine the matter carefully to protect both victim-survivors and taxpayers. The government is participating in proceedings before the New South Wales Supreme Court regarding the Christian Brothers’ proposed financial restructuring. Court documents also indicate property holdings held by the Brothers of the Christian Schools of Ireland, valued at $47 million as of May, may potentially be included in the proposed settlement scheme.
Reports indicate the Christian Brothers continues to financially support nine individuals convicted of child abuse who remain members of the organization, and maintains properties housing members with documented histories of abuse.
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