10pc Interest Penalty Imposed on Payout

By Dan Box
The Australian
May 16, 2013

http://www.theaustralian.com.au/national-affairs/in-depth/pc-interest-penalty-imposed-on-payout/story-fngburq5-1226643424803

THE victim of an alleged pedophile priest was paid a financial settlement by the Catholic church after agreeing not to pursue criminal charges, or else repay the money at 10 per cent interest.

Police documents tendered to a NSW Special Commission of Inquiry state "the church compensated one victim (of the priest) . . . on signing a 'deed of release' not to take civil or criminal action".

The police report, written by the detective at the centre of the inquiry, Peter Fox, said "the church compensated one (man) . . . on signing a 'deed of release' not to take civil or criminal action".

A copy of this deed, seen by The Australian but not tendered to the inquiry, shows the agreement was reached between the trustees of the Vincentian Fathers holy order and the man, who cannot be named.

The holy order "agreed without any admission of liability to provide an amount of $43,000 . . . to settle all claims", the documents state.

"In the event that the man in breach of the terms of this deed commences . . . any criminal proceedings . . . he will repay the agreed settlement sum to the trustees together with interest thereon at the rate of 10% per annum."

Although he did subsequently pursue criminal charges against the priest, the man refused to repay the financial settlement. The priest was charged with alleged offences against young boys, but the charges were later withdrawn. He remains a Catholic priest.

The inquiry yesterday heard that in his 2010 report, Detective Chief Inspector Fox called for "a full and comprehensive investigation into the conduct of the Maitland-Newcastle diocese of the Catholic Church".

He sent a copy of this report to a local reporter, Joanne McCarthy.

NSW police, who had established a strike force to investigate allegations senior clergy were covering up the crimes of pedophile priests, later met McCarthy to discuss this investigation.

During that meeting, McCarthy's legal representative, Andrew Morrison SC, suggested police execute a search warrant on the offices of the Archbishop of Sydney, George Pell, the inquiry heard.

The inquiry has not heard whether any such search was conducted by NSW Police.