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Ex-Eichstätt Bishop Admits Oversight Failures as Munich Trial Probes $60 Million Church Investment Losses

He told the court the diocese’s supervisory board lacked the expertise to police risky U.S. real-estate bets.

Overview

  • Proceedings at the Landgericht München II continue over speculative investments that left the diocese facing large losses.
  • Prosecutors charge a real-estate developer with breach of trust and bribery, and the former deputy finance director with breach of trust and taking bribes tied to poorly secured loans.
  • Gregor Maria Hanke testified that high-risk investments were made in violation of diocesan guidelines.
  • Auditors and an external law firm flagged unexplained gaps in the finances, after which Hanke concluded the money would probably not be recovered and described upheaval in the diocese.
  • Responsibility for reserve-asset investments lay with the Finanzkammer under the finance director and his then deputy, while Hanke said he set the framework and had longstanding personal ties to the accused deputy.