£6.5m per year income of nuns in abuse probe

A CATHOLIC religious order facing more than 400 claims of child abuse is at the centre of a £1million fraud investigation.

Nuns at the Sisters of Nazareth are set to give evidence before the Scottish Child Abuse Inquiry (SCAI), which resumes next week.

The order has an annual income of £6.5million – but has been hit by an alleged fraud of more than £1million.

It is said to have taken place at its Belfast care home for adults. Detectives at the Police Service of Northern Ireland (PSNI) are probing the claims.

The order’s annual report and accounts for 2016-17, published online, revealed its income had increased from £5.6million to £6.5million in the past year.

It said: ‘In September 2017 it was discovered the accountant who was contracted to process the accounts in the care home had allegedly committed fraud to the sum of £1.1million.

‘This was reported to the PSNI and the assets of the accountant were frozen.’

The report added that, following a legal order from the High Court in Belfast, ‘all the monies taken have been repaid, plus legal and professional costs incurred by the charity in respect to this matter’.

It continued: ‘The criminal investigation is ongoing, as is an internal review to assess where our systems failed and look at lessons learned.’

In the report, Sister Anna Maria Doolan, the regional superior, said: ‘In the past the sisters have cared for large numbers of children in all our houses across the UK and, unfortunately, not all of them have happy memories.’

But she added: ‘Many of our former children do have good memories of their time in care with the sisters and continue to come back for visits and bring family members to see where they grew up.’

The order’s annual report for 2015-16 said there was a ‘high chance of reputational risk’ resulting in a ‘loss of revenue’ due to compensation claims from alleged abuse victims.

It also warned of ‘increased insurance premiums due to claims history.’

In the latest report, the order said: ‘Many children formerly cared for in our children’s homes are coming forward with historical allegations.

‘There is a risk of reputational damage to the Sisters and the Congregation.’

No one from the Sisters of Nazareth was available for comment.

A PSNI spokesman declined to comment because the fraud investigation is ongoing.

At an SCAI hearing this month, it emerged that five Sisters of Nazareth nuns had tried to avoid giving evidence to the inquiry by producing doctors’ notes.

But the order assured SCAI chairman Lady Smith, who has been strongly critical of its conduct, that they would do so.

The inquiry is preparing to continue investigating claims against the order, with a ‘case study’ starting on April 24.

The £12million statutory SCAI began in 2015. In June last year, it heard the Sisters of Nazareth order was facing more than 400 allegations of abuse from former residents.