Last year, Monsignor Nunzio Scarano , the Bishop of Salerno – Chief Accountant of the Vatican was arrested on fraud and corruption charges. The Bishop whose nickname was ‘Don 500 Euros‘ was indicted on charges of money-laundering, cash smuggling and other charges.
Issues of fraud and corruption, within large well-known organisations highlights possible issues in internal controls, and reputation risks for the organisation, which may lead to loss of revenue especially for organisations such as the Vatican, where a significant percentage of revenue is from charitable givings. The Financial Times reports that this scandal should serve as prompt for the Vatican to comply with international money-laundering regulations.
This article is relevant to students taking ethics exams, in discussing the implications of unethical behavior and risks .
Photo Source: dailymail.co.uk
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