Government Raises Concerns Over Asset Transfers Risking Compensation for Christian Brothers Abuse Survivors

Federal government lawyers have raised concerns over the potential inappropriateness of property transfers made by the Christian Brothers Catholic order prior to its claim of financial insolvency, which could undermine compensation for abuse survivors.

The New South Wales Supreme Court has imposed a moratorium on all civil abuse claims against the Christian Brothers, a Catholic order central to the church’s child sexual abuse scandal.

The order sought the pause to implement a scheme aimed at liquidating its remaining assets—36 properties valued at $216m—to distribute proceeds among creditors, including survivors claiming $774m in damages.

Concerns center on property transfers, including land, school buildings, and homes near former schools, to Edmund Rice Education Australia (EREA) over the past decade. Records show these transfers occurred at $1 each, even for multimillion-dollar Sydney properties. EREA, established in 2007 as an independent entity, assumed control of former Christian Brothers schools.

Sera Mirzabegian SC, representing the Commonwealth, emphasized the government’s commitment to ensuring institutions assume responsibility for abuse and provide fair compensation. She highlighted unresolved questions about the legitimacy and appropriateness of asset transfers between the Christian Brothers and EREA.

Evidence submitted by the Christian Brothers regarding these transfers was deemed incomplete by Mirzabegian, noting discrepancies in reported valuations. The proposed scheme aims to preserve survivor claims against transferred assets, though the order warns that opposition could lead to liquidation and reduced payouts.

The court’s moratorium allows survivors time to evaluate the property sell-off proposal. Justice Scott Nixon emphasized that without the pause, survivors would lose the chance to assess the scheme’s implications on their claims.

The Christian Brothers previously cited administrative complexities in transferring school properties across jurisdictions as justification for the gradual handover to EREA.

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