The Gama Foundation, a Christchurch-based philanthropic organisation has today filed a Judicial Review application in Wellington's High Court. 

The Foundation is run by former Christchurch businessman Grant Nelson and his wife Marilyn. Over the past 25 years, they've donated more than $50 million to charity. 

Mr Nelson has been investigating the wage subsidy scheme for over two years. He's concerned that Auditor-General John Ryan has failed to do all within his power to help retrieve an estimated $5 billion that was overpaid and $2 billion that was wrongly obtained or retained by businesses.  Read more

The Vatican announced last week that PricewaterhouseCoopers (PwC) would no longer be responsible for the audit.

Instead it will be performed by the Holy See's Auditor General.

In a statement, the Vatican noted that PwC would play an "assisting role" to the Auditor General.

PwC will also be available to help Vatican departments with support and consulting services.

The Vatican said this new arrangement will enable "a broader collaboration" with PwC.

"This agreement permits all of the entities of the Holy See to participate more actively in the reforms under way," the statement noted.

The Holy See said that "by law" the Auditor General should undertake the audit as this is "normally the case for every sovereign state".

The position of the Auditor General, first established under Francis, reports directly to the Pope and has the power to look at the finances of any Vatican identity.

The current Auditor General is Libero Milone, a former chairman of Deloitte in Italy.

The Vatican's statement stressed that the path to achieving international accountancy standards is "normally complex and prolonged".

The Holy See suspended the audit by PricewaterhouseCoopers (PwC) in April in order "to examine the meaning and scope of certain contract clauses".

PwC's auditing was unilaterally and without the Pope's permission, put on hold by Cardinal Angelo Becciu, a high-ranking official at the Secretariat of State, in what was seen as a power struggle between Cardinal George Pell and senior curial officials.

One of the problems was reportedly the fact that Cardinal Pell was one of the signatories to the contract with PwC.

This assertion was challenged by the cardinal who said that PwC's three year deal - reportedly worth US$3 million - was agreed by the Council for the Economy, the body led by German Cardinal Reinhard Marx, which also oversees Cardinal Pell's department, the Secretariat for the Economy.

The latest Vatican statement stresses that the earlier suspension of PwC's work was not an attempt to "hinder reforms".

Sources

• The Tablet
• Catholic Herald
• Image: Catholic Herald

Under statutes approved by the Pope earlier this year, the auditor general will have the power to audit the books of any Vatican office.

He will report directly to the Pope.

Having an independent auditor helps ensure the "separation of powers" needed for reforming the Vatican's economic activity.

Among Mr Milone's previous work was three years as a member of the audit committee of the United Nations' World Food Programme.

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