The Catholic Church's troubled past with child abuse allegations has been thrust into the spotlight once more, as a probe uncovers the transfer of valuable real estate holdings by the Christian Brothers at knockdown prices. This comes as the order faces financial difficulties and informs an Australian court that it is struggling to pay out claims made by survivors, prompting a request for protection from further civil actions.
The Guardian Australia investigation has revealed that between 2013 and 2024, the Christian Brothers transferred numerous multi-million-pound properties for minimal sums to Edmund Rice Education Australia (EREA), a separate Catholic church entity. One notable example is a £2.5 million five-bedroom home with pool, sold for just £1 in November 2024. In New South Wales alone, 26 properties valued at over £26 million were transferred for nominal amounts.
The Christian Brothers have a regrettable history of child abuse claims, with an astonishing 22% of its brothers identified as alleged perpetrators – the second-highest rate among Catholic orders. Between 1980 and 2015, over 1,000 child abuse allegations were made against the order, involving hundreds of alleged perpetrators across 100 schools.
The Christian Brothers is currently seeking a court-ordered stay on at least 200 civil claims lodged by survivors. The order proposes to sell its remaining property portfolio, valued at around £114 million, and distribute the proceeds among creditors – including survivors – through a scheme overseen by retired judges. However, it has already indicated that this sell-off will not generate sufficient funds to fully compensate all creditors.
EREA, established in 2007 to manage schools previously linked with the Christian Brothers, operates independently of the order. With reported net assets of £1.2 billion and £180 million in cash as of December 2024, EREA insists it is not responsible for the financial affairs or liabilities of the Christian Brothers.