The Vatican was shaken by a corruption scandal Thursday after an 
Italian television investigation said a former top official had been 
transferred against his will after complaining about irregularities in 
awarding contracts.
The show "The Untouchables" on the respected private television 
network La 7 Wednesday night showed what it said were several letters 
that Archbishop Carlo Maria Vigano, who was then deputy-governor of 
Vatican City, sent to superiors, including Pope Benedict, in 2011 about 
the corruption.
The Vatican issued a statement Thursday criticizing the "methods" 
used in the journalistic investigation. But it confirmed that the 
letters were authentic by expressing "sadness over the publication of 
reserved documents."
As deputy governor of the Vatican City for two years from 2009 to 
2011, Vigano was the number two official in a department responsible for
 maintaining the tiny city-state's gardens, buildings, streets, museums 
and other infrastructure.
Vigano, currently the Vatican's ambassador in Washington, said in the
 letters that when he took the job in 2009 he discovered a web of 
corruption, nepotism and cronyism linked to the awarding of contracts to
 outside companies at inflated prices.
In one letter, Vigano tells the pope of a smear campaign against him 
(Vigano) by other Vatican officials who wanted him transferred because 
they were upset that he had taken drastic steps to save the Vatican 
money by cleaning up its procedures.
 
"Holy
 Father, my transfer right now would provoke much disorientation and 
discouragement in those who have believed it was possible to clean up so
 many situations of corruption and abuse of power that have been rooted 
in the management of so many departments," Vigano wrote to the pope on 
March 27, 2011.
In another letter to the pope on April 4, 2011, Vigano says he 
discovered the management of some Vatican City investments was entrusted
 to two funds managed by a committee of Italian bankers "who looked 
after their own interests more than ours."
LOSS OF $2.5 MILLION, 550,000 EURO NATIVITY SCENE
Vigano says in the same letter that in one single financial 
transaction in December, 2009, "they made us lose two and a half million
 dollars."
The program interviewed a man it identified as a member of the 
bankers' committee who said Vigano had developed a reputation as a 
"ballbreaker" among companies that had contracts with the Vatican, 
because of his insistence on transparency and competition.
The man's face was blurred on the transmission and his voice was distorted in order to conceal his identity.
In one of the letters to the pope, Vigano said Vatican-employed 
maintenance workers were demoralized because "work was always given to 
the same companies at costs at least double compared to those charged 
outside the Vatican."
For example, when Vigano discovered that the cost of the Vatican's 
larger than life nativity scene in St Peter's Square was 550,000 euros 
in 2009, he chopped 200,000 euros off the cost for the next Christmas, 
the program said.
Even though, Vigano's cost-cutting and transparency campaign helped 
turned Vatican City's budget from deficit to surplus during his tenure, 
in 2011 unsigned articles criticizing him as inefficient appeared in the
 Italian newspaper Il Giornale.
On March 22, 2011, Vatican Secretary of State Cardinal Tarcisio 
Bertone informed Vigano that he was being removed from his position, 
even though it was to have lasted until 2014.
Five days later he wrote to Bertone complaining that he was left 
"dumbfounded" by the ouster and because Bertone's motives for his 
removal were identical to those published in an anonymous article 
published against him in Il Giornale that month.
In early April, Vigano went over Bertone's head again and wrote 
directly to the pope, telling him that he had worked hard to "eliminate 
corruption, private interests and dysfunction that are widespread in 
various departments."
He also tells the pope in the same letter that "no-one should be 
surprised about the press campaign against me" because he tried to root 
out corruption and had made enemies.
Despite his appeals to the pope that a transfer, even if it meant a 
promotion, "would be a defeat difficult for me to accept," Vigano was 
named ambassador to Washington in October of last year after the sudden 
death of the previous envoy to the United States.
In its statement, the Vatican said the journalistic investigation had
 treated complicated subjects in a "partial and banal way" and could 
take steps to defend the "honor of morally upright people" who loyally 
serve the Church.
The statement said that today's administration was a continuation of 
the "correct and transparent management that inspired Monsignor Vigano."
 http://www.huffingtonpost.com/2012/01/26/corruption-scandal-vatican_n_1235038.html?1327618055&icid=maing-grid7|main5|dl7|sec1_lnk1%26pLid%3D130572
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