wfn.org | Episcopalians: Mexican covenant committee deals with misappropriation of funds

[dmack@episcopalchurch.org]

November 26, 2002

2002-270

Episcopalians: Mexican covenant committee deals with 
misappropriation of funds

by James Solheim

(ENS) The covenant committee that monitors the relationship 
between the Episcopal Church and the Iglesia Anglicana de 
Mexico (IAM) met November 19-20 in San Antonio, Texas, to 
deal with financial difficulties stemming from the 
misappropriation of funds by two Mexican bishops.

In a public statement released today, the committee of lay 
and clerical representatives appointed by presiding bishops of 
the two churches addressed reports of financial mismanagement in 
the Dioceses of Western and Northern Mexico and "to the need for 
greater mutuality in mission and ministry." The committee 
reviewed the terms of the present covenant and "possible needs 
for changes to suit new conditions resulting both from the 
financial difficulties reported and also to the present 
configuration of IAM's administrative structure."

The committee's review "produced a clear understanding that 
the leaders of the IAM have recognized the illicit actions of 
two of IAM's five diocesan bishops--Samuel Espinosa of Western 
and German Martinez of Northern Mexico." Recent audits reveal 
that approximately $1.4 million is involved over a period of 
five years, the bulk of the funds apparently coming from 
"custodial accounts and other designated funds held by ECUSA at 
IAM's request."

The committee said that "there may also have been 
unauthorized transfers from subsidy payments provided by ECUSA 
to assist in IAM's movement into autonomy," adding that "only 
further investigation will solidify the records of these fund 
uses."

Contrary to rumors that the two bishops involved had been 
pardoned by the present interim presiding bishop, the 
committee's statement said that representatives of the Mexican 
church "disclosed fully the actions being taken to prosecute the 
bishops of Western and Northern Mexico, through Mexico's 
criminal court system for their misbehavior." IAM has also taken 
action to inhibit the two bishops from functioning as bishops. 
The Standing Committees of the dioceses are now functioning as 
the ecclesiastical authority.

"Appropriate canonical changes will be made to assure annual 
certified financial audits of all provincial and diocesan 
accounts and to require that requests for fund allocations 
directed to the provincial office be signed by two or more 
authorized persons and supported by audits and budgets," the 
committee said. The treasurers of the two churches will develop 
"proposals for revisions of fund transfer and accounting 
practices and report their recommendations to the committee at 
an early date."

The committee said it was satisfied that leadership of the 
Mexican church "is proceeding responsibly and with due diligence 
to cure the sad conditions caused by the misappropriations" of 
the two bishops, clearly aware of the effect on the reputation 
of the IAM and "upon the whole of missionary endeavors across 
the Anglican Communion."

"In light of the rumors, it's important to clarify the 
situation and describe how both of our churches are dealing with 
this unfortunate situation," said the Rev. Patrick Mauney, 
director of Anglican and Global Relations for the Episcopal 
Church and a member of the covenant committee. 

Mauney said that the committee is "excellent" and had done a 
"superb job" in sorting through the issues and establishing 
guidelines that could prevent a similar situation in the future. 
"This kind of cooperation demonstrates how important it is to 
sit down with our partners and deal honestly with the situation 
and its implications," he said.

------

The covenant committee's statement and other background 
information is available at www.episcopalchurch.org/agr.

--James Solheim is director of Episcopal News Service.