"Uproar in the Diocese" - Former Bishop Testifies in Court - Ex-Bishop Hanke admits financial failures in $60M church scandal trial
Former Bishop Gregor Maria Hanke has admitted to serious failures in managing the Diocese of Eichstätt's finances. His testimony came during a trial at the Munich II Regional Court on 17 March 2026, where he revealed flaws in oversight that led to risky investments. The scandal first emerged in early 2018, eventually forcing his resignation after 18 years in office.
The financial troubles centred on nearly $60 million in speculative U.S. real estate loans made between 2014 and 2016. Hanke testified that the diocese's financial office operated with a high degree of independence, leaving him unaware of questionable deals until much later. He described the diocesan asset management council as overly reliant on internal members, which weakened proper scrutiny of investments.
Hanke also acknowledged that the supervisory body lacked the expertise needed to assess high-risk financial decisions. He admitted the oversight system was too lax, even though he had trusted it. The trial involves multiple defendants, including a property developer accused of breach of trust and bribery, as well as the diocese's former deputy financial director, who faces charges of breach of trust and corruptibility. The former bishop resigned abruptly at Pentecost 2025, months before his court appearance. His admission of lapses in financial governance has raised questions about accountability within the German Catholic Church, which has yet to take a clear public stance on the matter.
The Eichstätt diocese scandal has exposed gaps in financial oversight, with Hanke's testimony highlighting structural weaknesses. The trial continues to examine the roles of those involved in the $60 million investments and related corruption allegations. No further statements have been issued by the Catholic Church regarding broader reforms or responses.
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