The cardinal who leads a major Vatican financial institution is being investigated for embezzlement relating to a fund for priests in his former diocese.
Cardinal Domenico Calcagno and three others are suspected of “administrative irregularities” which led to a shortfall of several millions of euros in an institute that supports clergy in the Diocese of Savona-Noli.
According to Italian newspaper ‘Il Secolo XIX’ prosecutors are focussing on a number of suspect property deals for which the cardinal allegedly gave his backing. One of them involved the planned conversion of a large residential complex into a luxury hotel - but this never took place.
The investigation has been ongoing for at least three years with prosecutors focussing on the period that Cardinal Calcagno was bishop of the diocese which is in Liguria, the north west part of Italy.
A prosecution of Cardinal Calcagno could have knock-on effects for Pope Francis as he seeks to reform Vatican finances.
The cardinal is now president of the Administration of the Patrimony of the Apostolic See (APSA), which is the Vatican financial powerhouse that manages properties, investments and pays the salaries of Holy See employees.
Questions are increasingly being asked about APSA after last November it emerged that an investigation was underway into Italian banker Giampetro Nattino, who is suspected of using an account there for money laundering, insider trading and market manipulation.
It was also confirmed last month that the Vatican’s financial watchdog does not have jurisdiction over APSA, but under the Pope’s new guidelines it does fall under the oversight of Australian Cardinal George Pell’s finance department.
Responding to news of the investigation Cardinal Calcagno, who left Savona-Noli in 2007, said he was “serene”, adding: "I trust in the work of the Italian judiciary.”
The move by prosecutors came as the Pope urged Italian bishops to “maintain only what is useful for the faith experience and the charity of the people of God” when it comes to property and finances.
The Italian church is a major beneficiary of the “8 per thousand tax” whereby a portion of the income tax paid by Italian citizens is directed to religious institutions. Last year the Church received €995 million (roughly £777m) in this way; a third went to supporting the clergy.
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