NEWRY (UNITED KINGDOM)
The Irish News [Belfast, Northern Ireland]
January 31, 2026
By Connla Young
The diocese has paid out millions to Malachy Finegan victims
A Catholic church diocese facing a multi-million pound sex abuse compensation bill has lodged an application with a court over “material uncertainty regarding its finances” and asked for guidance on how to manage its shrinking assets.
The Diocese of Dromore has been at the centre of an abuse controversy over its handling of serial child abuser Malachy Finegan, a former priest of the diocese.
It has emerged that church authorities have made an application to the Chancery Court, which deals with various financial matters, last month.
It is understood a court hearing linked to the application was held behind closed doors on Friday.
Lawyers for the church were instructed to file an application for directions with the Chancery Court on behalf the Dioceses of Dromore Trustee “arising from material uncertainty regarding its finances”.
According to correspondence from church legal representatives, seen by the Irish News, it holds all assets of the parishes of the diocese, which includes churches, church halls, cemeteries and parochial houses.
The document confirms that since 2018, the Diocese of Dromore Trustee “has taken numerous measures to liquidate, or otherwise realise all other assets available for the benefit of the diocese, ie, assets that are not the parish assets within the Trust for the purpose of providing fair compensation to claimants for historical clerical abuse”.
The Diocese of Dromore covers parts of counties Antrim,Armagh and Down, taking in 23 parishes and 48 churchesand has an estimated Catholic population of around 65,000.
While the Catholic church has been in the grip of child abuse scandals since the 1990s, it is understood to be rare for church leaders to ask the courts for financial guidance.
A former president of St Colman’s College in Newry, Finegan,who some suspect was an RUC informer, abused boys underhis care and later did so as parish priest of Clonduff inHilltown, Co Down.
It is believed that around 12 young boys were targeted at StColman’s by Finegan, who died in 2002, while many morewere physically assaulted.
In 2021 church chiefs set up a £2.5m redress scheme, with a cap of £80,000, and pledged to “exhaust” its resources if required.
Last month church authorities agreed the sale of the Bishop’s House in Newry, while the sale of the associated land remains pending.
The contents of the house, including ornate furniture, paintings and ornaments, were also sold off last year.
Earlier this month, five former pupils who said Finegan groomed and abused them obtained an enforcement order for damages of more than £1m.
The church has now sought guidance from the Chancery Court regarding “what further assets, if any, are available to the trustees outside the Bishop’s House and the lands…for the benefit of the diocese”.
Lawyers for the church add that “such determination may necessitate the court’s adjudication on whether the Trustee is obliged to dispose of parish assets in satisfaction of claimants’ demands or whether these assets fall outside the assets available for distribution”.
They have also questioned “what is the appropriate method for the distribution of funds now available from the sale of the Bishop’s House and in due course to make the same assessment in relation to any funds which will become available from the sale of the lands”.
In 2018 former Bishop of Dromore John McAreavey stood down over criticism of how he dealt with Finegan.
The diocese’s current apostolic administrator is Archbishop of Armagh Eamon Martin, the leader of the Catholic Church in Ireland.
Kevin Winters, of KRW Law, said the “rumours of the impecuniosity of the diocese have been rife for some time now”.
Mr Winters, who represents several of Finegan’s victims, added that “in some respects we aren’t surprised at the latest development”.
“As of today, we are on alert now to take steps to protect the position of victims and survivors.
“Their interests need to be at the centre of whatever legal processes are underway to realise funds.
“They need to be at the very top of the queue when it comes prioritising payments from the sale of assets.”
And he added: “we also need to guard against any hint of victim blaming when it comes to examining the dire financial status of the diocese”.
The Catholic Church referred to a letter sent by Archbishop Martin to parishioners in December informing them of the sale of the Bishop’s House.
He added: “In order to remain fully compliant with its legal duties, the Diocese has requested direction from the High Court in this past week concerning its financial position. I shall inform you of the result of this request when it becomes available.”