The Christian Brothers, a Catholic religious order operating in Australia, has informed a court that it lacks sufficient funds to pay compensation to hundreds of survivors of abuse through the national redress scheme, according to court documents released this month.
Financial records show the organization currently faces 340 redress claims valued at approximately $25 million, with actuarial projections indicating an additional 590 future claims worth $40 million. In total, the Christian Brothers faces potential liability of 930 claims valued at $65 million. Under the rules of Australia’s national redress scheme, the federal government functions as a “funder of last resort,” obligating taxpayers to cover compensation when an institution ceases to exist or cannot pay.
The Christian Brothers has proposed selling its remaining 36 properties and distributing proceeds among creditors including survivors and the government. However, experts anticipate these sales will generate only a fraction of the compensation owed. Survivors and legal representatives have expressed frustration over transfers of valuable properties to a separate entity, the Trustees of Edmund Rice Education Australia, which occurred over the past decade at nominal costs of $1 per transaction. That entity has resisted efforts to liquidate those properties to fund survivor compensation.
Australian Social Services Minister Tanya Plibersek stated the government would examine the Christian Brothers’ restructuring plan closely and ensure the national redress scheme’s integrity. The government is participating in New South Wales Supreme Court proceedings related to the organization’s proposed creditors’ scheme to protect survivor and taxpayer interests. Court documents also revealed the Christian Brothers of Ireland, a related entity, holds approximately $47 million in net assets that could potentially be included in the settlement arrangement.
Additional reporting has indicated the Christian Brothers continues to provide financial support to nine individuals within the order who have been convicted of child abuse, and maintains properties housing members with documented histories of abuse.
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