c. 2000 Religion News Service

VICTORIA, British Columbia _ Calling it a triumph of faith and hope, Victoria Bishop Raymond Roussin says his diocese raised $13 million this summer to pay off old debts incurred through bad investments in racehorses and land speculation.

The diocese has used the money _ brought in through a unique sale of church bonds _ to escape an onerous 18 percent mortgage on a Washington state property that was purchased during the lengthy tenure of retired Bishop Remi De Roo.

A national Roman Catholic inquiry determined in June that De Roo, who is well known for advancing social justice causes, made secret financial decisions that were “beyond belief” as he embroiled the Vancouver Island diocese in a “financial debacle” involving racehorses and the Washington state land.

Nearly all of the money the diocese raised this summer to relieve its debt came through an unusual church bond offering, which promises investors an annual 6 percent return after three years.

Financial analysts say the church bond offering has worked so well it may be copied by other religious groups.

Although Vancouver Island parishioners contributed most of the money, a Vancouver Catholic businessman bought more than $100,000 of the bonds. As well, members of the Salvation Army, the Muslim faith and the United and Anglican churches pitched in through a combination of donations and bond purchases.

“What we have done is wonderful,” Roussin said in a statement.

“By God’s grace we have moved together as a diocesan church. I see our prayer of thanksgiving as one that will allow us to continue to be of service to one another, and to those less fortunate here in our diocese and elsewhere in the world.”

Ellis Achtem, a lawyer in Victoria who coordinated the diocese’s appeal, said most of Vancouver Island’s 90,000 Catholics are “feeling great” and starting to forget the dubious deals in racehorses and land entered into by De Roo on the advice of his former chief financial officer, Muriel Clemenger, a horse aficionado.

“It certainly wouldn’t be charitable _ or productive _ to run around beating people up for what they did in the past,” Achtem said. “This adversity has actually brought us together.”

De Roo, who retired in early 1999 after 37 years as the diocese’s bishop, has issued written public apologies and is among those who has offered to donate whatever he can. There is no suggestion he ever engaged in corruption during his tenure.

The $13 million raised through bonds and donations has already been used to buy out the 18 percent mortgage with AG Capital Ltd. of New York on the property, near Olympia, Wash.. The diocese will now be trying to sell the land, which could be worth anywhere from $6 million to $12 million.

However, the sale of the land will not make up the diocese’s entire shortfall of $17 million.

Achtem acknowledges the diocese will also have to sell some of its unused land to pay off bond holders three years from now. The bonds are ultimately secured against property the diocese owns on Vancouver Island.

Darlene Southwell, a diocesan official who has worked closely with both Roussin and De Roo, said she senses that church members are ready to move on after expressing their shock and anger earlier in the year over the financial quagmire.

“Bishop De Roo is human,” she said. “I hope people will appreciate the strong things he did in many areas. But for many it will take some time.”

DEA END TODD