Key facts
- The Australian government is concerned about potential improper asset transfers by the Christian Brothers.
- The Christian Brothers has been granted a pause on payouts to child sex abuse victims.
- The order estimates it owes $774 million to survivors, exceeding its available cash and property holdings.
- Properties were transferred to Edmund Rice Education Australia for as little as $1.
- The NSW Supreme Court ordered a moratorium on abuse claims to allow survivors to consider a proposed compensation scheme.
The Australian federal government has raised concerns in the NSW Supreme Court regarding potential improper asset transfers by the Christian Brothers Catholic order, which could jeopardize compensation for abuse survivors. The order, which estimates it owes survivors A$774 million against its available cash and property holdings, sought and was granted a moratorium on civil claims. The court heard that properties were transferred to Edmund Rice Education Australia (EREA), an entity set up to manage the order's schools, for as little as $1, with these properties now valued at approximately $2 billion. The government's legal representation described these arrangements as potentially shielding assets or limiting institutional liability. Justice Scott Nixon granted the moratorium to allow claimants time to consider a proposed settlement scheme involving the sale of remaining properties, warning that this opportunity might otherwise be lost. Some claimants expressed feeling blindsided by the development.