Questions and Answers Regarding the Legionaries of Christ in the Pandora Papers

1. Is it true that the Congregation of the Legionaries of Christ has millions of dollars held in trusts in New Zealand, as it has been reported in some news articles about the Pandora Papers?

No, it is not true. The two trusts that the media reports claim have this money were not created by the Legionaries of Christ. The “Pandora Papers” publications have falsely attributed them to the Congregation, although the Legionaries of Christ have clarified this information to the International Consortium of Investigative Journalists. The Legionaries of Christ have, however,  received donations from these two trusts, which were created by a priest of the Congregation and his relatives.

2. What is the relationship between the Legionaries of Christ and the AlfaOmega Trust and the Salus Trust (not created by the Congregation)?

They are related in the following ways:

1. The AlphaOmega Trust and the Salus Trust were created by a priest who is a member of the Legionaries of Christ and some of his relatives.

2. The Legionaries of Christ and several works of apostolate received loans from this priest and from the AlfaOmega Trust and the Salus Trust, which are to be repaid to these trusts.

3. The Legionaries of Christ, through the Retirement and Medical Charitable Trust, or RMCT (created by the Congregation), has received donations from the AlfaOmega Trust and the Salus Trust (not created by the Congregation).

4. The RMCT Trust (created by the Congregation) and the AlfaOmega Trust and Salus Trust (not created by the Congregation) all have contracts with the same company which provides advisors, trustees, and banking — services which it also provides to many other clients.

3. In 2017, didn’t the Congregation’s spokesperson state that the Legionaries of Christ no longer had offshore entities?

That is correct. That statement was true then and it is true today.

In the 2017 “Panama Papers” it was stated that the Legionaries of Christ had no offshore entities in tax havens. The Congregation issued a statement and affirmed that “The institutions and apostolates promoted by the Legionaries of Christ do not currently have offshore entities nor do they have funds in offshore entities.” This statement is true because New Zealand is not a tax haven, according to the European Parliament. The Retirement Medical Charitable Trust (RMCT) has no capital and is not used for investments. Its sole purpose is to receive donations and distribute them.

The 2017 statement has been updated with a footnote explaining how the statement is supported by these facts.

Link to the 2017 press release (Spanish).

4. Have the Legionaries of Christ evaded taxes with the RMCT trust in New Zealand?

The Legionaries of Christ have not evaded taxes with the RMCT Trust, which has not invested funds and does not have any capital – other than what is necessary for its basic operation. The RMCT has complied with international accounting laws, auditing standards, donor transparency, and applicable tax regulations. Furthermore, New Zealand is not considered by the European Parliament to be a tax haven.

5. In several articles about the Pandora Papers it is stated that the board members of the Salus Trust and AlfaOmega Trust (not created by the Congregation) must be Legionaries of Christ, members of Regnum Christi, and relatives of the trusts’ founders. Is this true, or are they referring to the RMCT trust (created by the Congregation)?

The Congregation has no knowledge of the bylaws governing the AlfaOmega Trust and the Salus Trust, which establish who their board members are, because they were not created by the Legionaries of Christ. The Congregation has never controlled their funds, their terms, their operations, or their investments. Nor does the Congregation determine the destination of their funds in any way, even though the trusts were created by a Legionary priest and his family members.

The RMCT trust (created by the Congregation) has a board of directors, made up of members of the Legionaries of Christ, which rotates periodically by statute, according to the positions they hold in the Congregation.

6. Is it stipulated that the RMCT trust (created by the Congregation) be the beneficiary of the AlfaOmega Trust and the Salus Trust (not created by the Congregation)?

The RMCT trust has received donations from the AlfaOmega Trust and the Salus Trust. However, these trusts were not created by the Legionaries of Christ, and the Congregation has no knowledge of their bylaws or the decisions of their trustees. Therefore, the Congregation does not know if the RMCT (created by the Congregation) is the sole beneficiary, as some media reports say (this would mean that the trusts make contributions exclusively to the Congregation). This is a decision that is in the hands of the trusts, now and in the future.

7. Some in the media say that the Legionaries of Christ will receive the funds of the AlfaOmega Trust and the Salus Trust (not created by the Congregation) upon the death of those who created them, is this true?

As a Congregation, we have no information on this matter. By its very nature, an irrevocable trust usually lasts for a certain period of time, independently of the persons who created it, and it regulates the amendment of its statutes, where these aspects are established.

8. If the Legionaries of Christ have millions of dollars in trusts in New Zealand, as some news articles about the Pandora Papers have said, why have they sold houses and properties during the last 10 years to reduce their debt?

The claim is false. The Congregation does not have any money in trusts in New Zealand. The Congregation sold properties as part of its commitment to pay the debt it has incurred, according to its responsibilities.