November 26, 2002
by James Solheim

The covenant committee that monitors the relationship between the Episcopal Church and the Iglesia Anglicana de Mexico (IAM) met November 19-20 in San Antonio, Texas, to deal with financial difficulties stemming from the misappropriation of funds by two Mexican bishops.

In a public statement released today, the committee of lay and clerical representatives appointed by presiding bishops of the two churches addressed reports of financial mismanagement in the Dioceses of Western and Northern Mexico and "to the need for greater mutuality in mission and ministry." The committee reviewed the terms of the present covenant and "possible needs for changes to suit new conditions resulting both from the financial difficulties reported and also to the present configuration of IAM's administrative structure."

The committee's review "produced a clear understanding that the leaders of the IAM have recognized the illicit actions of two of IAM's five diocesan bishops – Samuel Espinosa of Western and German Martinez of Northern Mexico." Recent audits reveal that approximately $1.4 million is involved over a period of five years, the bulk of the funds apparently coming from "custodial accounts and other designated funds held by ECUSA at IAM's request."

The committee said that "there may also have been unauthorized transfers from subsidy payments provided by ECUSA to assist in IAM's movement into autonomy," adding that "only further investigation will solidify the records of these fund uses."

Contrary to rumors that the two bishops involved had been pardoned by the present interim presiding bishop, the committee's statement said that representatives of the Mexican church "disclosed fully the actions being taken to prosecute the bishops of Western and Northern Mexico, through Mexico's criminal court system for their misbehavior." IAM has also taken action to inhibit the two bishops from functioning as bishops. The Standing Committees of the dioceses are now functioning as the ecclesiastical authority.

"Appropriate canonical changes will be made to assure annual certified financial audits of all provincial and diocesan accounts and to require that requests for fund allocations directed to the provincial office be signed by two or more authorized persons and supported by audits and budgets," the committee said. The treasurers of the two churches will develop "proposals for revisions of fund transfer and accounting practices and report their recommendations to the committee at an early date."

The committee said it was satisfied that leadership of the Mexican church "is proceeding responsibly and with due diligence to cure the sad conditions caused by the misappropriations" of the two bishops, clearly aware of the effect on the reputation of the IAM and "upon the whole of missionary endeavors across the Anglican Communion."

"In light of the rumors, it's important to clarify the situation and describe how both of our churches are dealing with this unfortunate situation," said the Rev. Patrick Mauney, director of Anglican and Global Relations for the Episcopal Church and a member of the covenant committee.

Mauney said that the committee is "excellent" and had done a "superb job" in sorting through the issues and establishing guidelines that could prevent a similar situation in the future. "This kind of cooperation demonstrates how important it is to sit down with our partners and deal honestly with the situation and its implications," he said.

Episcopal News Service