Cut

Published by The National Herald, July 1, 2005

Archdiocese Plans to Cut Expenses, Will Fire Employees

BOSTON. - The Greek Orthodox Archdiocese of America is reportedly facing the worst financial crisis in the past 25 years of its history. According to information obtained by The National Herald, the Archdiocese is no longer in a position to meet its payroll obligations, and has already decided to dismiss some of its employees – including departmental heads – and offer early-retirement packages to others.

In the last two months, Mr. Nicholas Bouras, treasurer of the Archdiocesan Council and a prominent New Jersey businessman has paid the Archdiocesan payroll from his own pocket.

But such donations have not relieved the Archdiocese of its debt, which has reportedly shot up to an estimated $11.5 to $12 million. It should be noted that this debt load has been accumulated during Archbishop Demetrios’ six-year tenure.

Members of the Archdiocesan Council’s executive committee said during a meeting held Thursday June 23 at the Archdiocesan headquarters in Manhattan, that they expected the upcoming two months to be extremely difficult financially for the Archdiocese. The committee estimated that a total of $500,000 must be saved by the end of this year alone, and an additional $900,000 by the end of next year, sums significantly lower from the Archdiocesan deficit. The committee decided to save that money from the salaries of the soon-to-be- dismissed personnel.

Archdiocesan director of administration Mr. Jerry Demetriou, who also serves as a paid consultant of Leadership 100, has reportedly been given the task of dismissing the employees. It is not known how many and which employees will be dismissed, nor which Archdiocesan departments will be affected.

The National Herald has obtained information that the Archdiocese is also preparing to settle a $700,000 legal case of sexual misconduct by a Greek Orthodox priest. The case, which goes back more than 25 years was recently settled with the accusers, some of whom are members of the priest’s extended family. The amount of the settlement fee will come from Archdiocesan funds, as insurance companies do not cover Church expenses for sexual misconduct cases.

Archdiocesan funds are raised from the monthly allocations of parishes throughout the country.

In addition a settlement was recently reached between the Archdiocese and Case & White Legal Firm, which has represented the Archdiocese in various legal cases over the past years. The settlement reduced the total amount owed by the Archdiocese for legal fees from two to one million dollars.

An extensive discussion was also conducted at the recent Council committee meeting, regarding the late Archbishop Iakovos’ former residence in Rye, New York, with some committee members supporting a previous suggestion that the house be sold in order to reduce the Archdiocesan deficit. According to preliminary appraisals, the Archdiocese could raise anywhere from $3.4 to $4.5 million from the sale. The meeting also addressed the issue of handling the sale from a public relations point, so that a potentially negative community reaction would be prevented.

Archbishop Demetrios has been openly in favor of selling the house ever since Archbishop Iakovos died two months ago. Since the beginning of his Archbishopric tenure in September 1999, Archbishop Demetrios has resided in a rental apartment in Manhattan, which costs the Archdiocese an estimated $8,000 per month. The Archbishop has refused to live in Iakovos’ residence and has insisted on keeping his current apartment, despite the existence of another one, located in the Archdiocesan Headquarters in Manhattan, which was used by Archbishop Iakovos during the first 11 years of his tenure. Another apartment is also available to Archbishop Demetrios at the Holy Trinity Cathedral Tower.

At last week’s Council committee meeting it was also decided that a donation made to the Archdiocese from the will of a Greek-Orthodox person, would be used towards reduction of the debt.

According to sources, Mrs. Eleni Huszagh, member of the executive committee, suggested during the recent Council meeting, that the content of discussions held during committee meetings should be kept confidential and that members should refrain from talking to the press. Mrs. Huszagh was then told by some of her fellow committee members that the Archdiocese is a non-profit organization and according to its rules and regulations is obligated to keep its members informed about the activities of its administrative bodies. One such rule states that the minutes of Council meetings should be made public within 30 days after a meeting is held.

Also during the recent Council meeting, Mr. Bouras was congratulated for his donation to the Archdiocese by Mr. John Pappajohn, a businessman and fellow committee member.

A nation-wide study is expected to take place in coming months to determine the views of Greek Orthodox leaders and faithful on the current course of the Archdiocese. A related questionnaire will be sent to Metropolitans, priests and parish council presidents around the country.

The Archdiocesan Executive Committee is comprised by the following: Archbishop Demetrios, chairman; Michael Jaharis from New York, vice chairman; George Behrakis from Lowell MA, member; John Pappajohn from Des Moines IA, member; Nicholas Bouras from Summit NJ, treasurer; John Collis from Cleveland OH, member; John Payiavlas from Warren OH, member; Catherine Bouffides-Walsh from Glastonbury CT, secretary; Elenie Huszagh from Portland OR, member; Anthony Stefanis from Atlanta GA, member and Emanuel Demos from New York, general legal counsel.



Volume 7 Number 27 - Tuesday, July 5th, 2005	A Publication of the ORTHODOX CHRISTIAN LAITY