Vatican Bank Board Ousts Chief Tedeschi in No-confidence Vote

By Paddy Agnew
Irish Times
May 25, 2012

http://www.irishtimes.com/newspaper/world/2012/0525/1224316663956.html

The controversial Vatican Bank, IOR (Istituto Per Le Opere di Religione), is in the wars again after its president was last night unanimously dismissed in a no-confidence vote by the bank’s board, all laymen.

President Ettore Gotti Tedeschi, who is being investigated on accusations of money laundering, was sacked because of his failure to fulfil “the primary functions of his office”, according to a Holy See statement. Members of the board believed Mr Tedeschi’s dismissal was needed to “maintain the vitality of the bank”, the statement said.

By all accounts, yesterday’s board meeting was far from tranquil, with Mr Tedeschi clashing bitterly with the other four lay members. Mr Tedeschi reportedly clashed with his board over the bank’s failure to respect international anti-money laundering regulations.

There are allegations that IOR is heavily involved in the mismanagement of millions of euro made available to the San Raffaele Hospital in Milan. A Milan-based inquiry has already led to the arrest on fraud charges of two businessmen, Giancarlo Grenci and Pierangelo Dacco, both closely linked to the controversial lay movement, Comunione E Liberazione. The Cardinals Commission, which oversees IOR and which is led by secretary of state Cardinal Tarcisio Bertone, will meet today to consider the implications of Mr Tedeschi’s sacking.