Confronting Corruption (Dec. 2011--Jan. 2012)

Insipid Salt and Illusory Light

 Christ cleansing the temple
Carl Heinrich Bloch, 1875

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You are the salt of the earth; but if the salt has become insipid, wherewith shall it be salted?

It is no longer fit for anything but to be cast out and to be trodden under foot by men.

(MT 5:13, Darby Bible)

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The eye is the lamp of the body; so then if your eye is clear, your whole body
will be full of  light. But if your eye is bad, your whole body will be full of darkness.
If then the light that is in you is darkness, how great is the darkness!
(MT 6:22-23, New American Standard Bible)

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The track record for dealing with fraud in the CMC is undeniably mixed at best. Unfortunately what can only be called cowardice and cover ups are often the predominant (and carefully disguised) responses from those in positions of influence. We are reminded of the introductory comments on the PETRA People web site (homepage) in which moral salt becomes insipid and illuminating light becomes illusory.

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The most disconcerting aspect of NCI is not simply the lost money. Nor is it simply the negative emotional impact on the lives of so many "investors" and their family members and colleagues. Rather it is the consistent response of individuals/leaders within the church-mission community: unwillingness to investigate or get informed, fear of reprisals, self-protection, and discrediting those calling for transparency and accountability, all at the expense of vulnerable people. It is time to change this course and to act with moral courage and united strength.
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Here are two updates followed by renewed calls for courageous and united action.

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PART ONE: UPDATES----Being Salt and Light

Update One: NCI Case

The NCI fraud was investigated by the Swedish National Economic Crimes Bureau (EBM), starting in August 2008. The EBM eventually chose to keep the focus limited with regards to tracing money and prosecuting people (a Swedish person only, Mr. Westergard). The 28 October 2010 verdict from the Uppsala, Sweden court found Mr. Westergard guilty of fraud (sentenced to four years of prison and required to repay some of the victims). This verdict (the fraud, not the responsibility to repay) was then appealed to the Svea court in Stockholm with the Svea court’s decision on 28 October 2011 upholding the previous verdict and sentencing the defendant to 3.5 years of prison. This second verdict was then appealed to the Swedish high court on 23 November 2011. This is the final appeal possible in Sweden. The high court's decision about accepting the appeal could take up to six months.

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For more background on the NCI case, concerns, and the way forward, see these two summary documents from the PETRA People website:

NCI Summary Information
Suggestions: Going Forward

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Update Two: Salt and Light Summons  

One of the many recent resources linked on  the PETRA People website is the compelling article posted in the Global Conversations section of the Lausanne Movement’s website. This article was featured in its monthly Connecting Point newsletter (November 2011) and is titled:  Salt and Light: Christians' Role in Combating Corruption, by  Paul Batchelor and Steve Osei-Mensah. These authors unequivocally call for the global church to acknowledge and confront the rampant corruption in its midst, with a special challenge for individuals, leaders and the Lausanne Movement itself to take practical, tangible action. Their brief description of “seven widely-recognised principles or approaches”  that governments, regulators and organisations use to confront corruption are also applicable to the CMC. Here are some excerpts:

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·         “We will argue that the time has come to make this a truly global effort among evangelicals.”

·          “Furthermore, if the church becomes more vociferous in its opposition to corruption, as I would urge it should, then we must beware of the risk of hypocrisy if our own house is not put in order first.”

·         “We must not turn a blind eye to or condone corruption. The evidence of its corrosive effect is clear and the biblical teachings are unambiguous. Now is the time for the Lausanne Movement to build on the foundation laid in Manila [1989] and the actions which have followed in some parts of the world, to initiate a truly global programme of action against corruption involving churches and individual Christians in all fields, whether in government, business or academia.”

·         “Christians must take great care that they are not unwittingly complicit in someone else’s corruption, no matter how innocent the motive or scheme may at first appear. This requires constant vigilance and prayer for wisdom and discernment and the courage to take a stand.”

·         “We should pray also for the same Holy Spirit’s power to take our stand, however painful, in obedience to the Lord. Daniel’s faith was not without cost. Many whistle-blowers in today’s world also show great courage and we should pray for their fortitude.”

·         “But this change of life is not simply a matter of private belief and personal behaviour, it is a call to reach out to others and, where necessary, to be active in the ‘public square’ to engage with and confront the contemporary culture. Part of this requires action by each of us individually. Part relates to our specific field of service whether in government, business, academia or the church. And part relates to how we can bring each of these together to harness the synergies of collective action.”

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PART TWO: CALL TO ACTION--Being Salt and Light

 Here are three action points in support of the summons in:  Salt and Light: Christians' Role in Combating Corruption  and the PETRA Statement 2011; A Call for Transparency and Accountability.

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Action Point One: Lausanne Movement

We encourage a group of leaders of the Lausanne Movement to meet and form a high-level working group that will openly and globally address the problem of corruption in the CMC as well as identify and develop resources to help. This group could also build upon the work of the Lausanne Standards comprised of  “affirmations and agreements for giving and receiving money in mission.” These standards, when joined with other guidelines for accounting, whistleblower protection, and dealing with fraud, can collectively be important educational tools/safeguards for the CMC (and with regard to cultural variations).

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Action Point Two: Organizations Affected by NCI

The request still stands by the signatories of the PETRA Statement which urges the organizations affected by NCI to take action. This request has largely been unheeded.
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We also strongly encourage Christian leaders of organizations that have been affected to offer their assistance: to get accurately informed, review their responses to date, and to prioritize meeting together with internal and external professional consultants and the IPT for support and accountability. Some of the main organizations include: Youth With A Mission (YWAM), YWAM France/Swiss Romande, Mercy Ships, and Youth For Christ Switzerland; Le Rucher and its Mercy Ministries Associations; churches in France, Holland, Switzerland, and Sweden; and in addition people/projects around the world that have been affected by or benefited from NCI.

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For example see the latest letter and links to supportive documents sent to YWAM leaders: Request to YWAM Leaders for Assistance (5 June 2011)

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For example see the Joint Statement issued by the Mercy Ministry Boards in June 2011 (France, Switzerland ,The Netherlands). (Note you can contact these Boards to get the Statement). One of the key missing pieces in this Statement was the absence of any mention of Mercy Ministries International, which the Swedish EBM investigation and Swedish court documents show received significant amounts of NCI money. Also absent are the mention of any such money flows, the money that went to Le Rucher and the special NGF account, the responsibility to verifiably disclose the money flows, and the commitment to return NCI money that does not rightfully belong to them. See some examples of the NCI-related money flows: Some Examples of NCI Money Flows to and from MM/NGF et al

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For example the European Evangelical Mission Association (EEMA) issued a public statement regarding NCI on 13 June 2011. This statement was changed however in the public statement issued the next day, 14 June 2011.  It is not clear why the first seemingly authoritative and  well-researched public statement needed to be changed and reissued the next day, and why differences exist. For instance compare the yellow highlights (13 June) with the blue highlights (14 June) below. It would be very helpful if EEMA could kindly clarify these changes as well as the specific investigations, investigative methodology, and research reports that support their assertions.
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13 June 2011:

“I can assure you that this is not the case and we have explored this matter fully and seriously….Following the recent article in Christianity Today, we are pleased to release the following public statement based on our investigation and responses to many individuals….Le Rucher has not benefitted from this fraud in any way…. We have investigated this matter over many years….We believe the mission community has fully investigated this matter and that the guilty have been successfully prosecuted through the courts.”

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14 June 2011:

It is based on our research into this issue, our opinion of the situation and previous statements the EEMA to individuals who have enquired. You may use it as you wish in full and send it on to other people…. Following the recent article in Christianity Today, we are releasing the following statement based on our investigation and responses to many individuals…. [This authoritative, investigated assertion from the 13 June 2011 statement is now omitted:  “Le Rucher has not benefitted from this fraud in any way]….We have investigated this matter over many years… We believe the mission community has fully investigated this matter and that the guilty have been successfully prosecuted through the courts.

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For example leaders in the churches in the Geneva area have been asked to help, including the leaders at Crossroads Church in Ferney-Voltaire. See:

Letters to Church Leaders in the Geneva-Lausanne Areas (two letters, 2010, 2011)

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For example leaders in Youth for Christ (YFC which is recognised internationally for its Christian minsitry) have not authorised a review of how their organisation in Switzerland was affected by NCI. The name “YFC” and their address in Coppet, Switzerland was used in much of the NCI-related correspondence, as listed in the Swedish EBM and Swedish Court docs. (Note that there was overlap between Board members of YFC Coppet Switzerland, Board members of Mercy Minsitries, and the Elders Board of Crossroads Church in Ferney-Voltaire by Geneva. It would be very helpful for current and previous members of these governing bodies to meet and review the NCI matter with transparency and accountability.) See: Two Swiss addresses used for corrrespondance including Youth For Christ (YFC) and Le Rucher Minstries

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For example it would be very helpful for Mercy Ships International to issue a statement with verification regarding any way that they may have been affected by NCI. For example in the Swedish EBM investigation and court  documents  as well as documents from the Salzburg, Austria court, there is mention of the three million US dollar transaction related to NCI that was sent from Switzerland to Austria. This money is said to have been to benefit Mercy Ships. It was immediately frozen in November 2001 by the Austria government. See the “NCI Documents” section on the PETRA People web site, and then open up the “Austria case” folder in the attachments.  

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Action Point Three: Independent Professional Team

The request still stands by the signatories of the PETRA Statement which urges that an Independent Professional Team form and take action.

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We strongly back the formation of an Independent Professional Team (IPT). An IPT would review the data/evidence concerning the NCI scheme as well as the related organizational governance issues/practices. It would encourage the needed forensic accounting for money flows and put a mechanism in place, with due consideration of any court cases by governments and others, whereby money could be fairly returned/recovered for investors.

Christ cleansing the temple

Raymond Blaze, 19th century

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FINAL THOUGHTS--Being Salt and Light

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We must not turn a blind eye to or condone corruption.

The evidence of its corrosive effect is clear and the biblical teachings are unambiguous.

(Salt and Light: Christians' Role in Combating Corruption, Batchelor, Osei-Mensah, 2011)

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How will we in the CMC (individuals, leaders, and organizations) resolutely be salt and light? And how will we prevent and deal with moral salt that becomes insipid and illuminating light that becomes illusory? We encourage you to read the Salt and Light article, discussing it with colleagues and noting for example the seven principles/approaches described in the article. We finish now by repeating the instructive quote from the home page of the  PETRA People website, calling for “moral courage and united strength” in response to the NCI case (PETRA People web site, homepage).
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The most disconcerting aspect of NCI is not simply the lost money. Nor is it simply the negative emotional impact on the lives of so many "investors" and their family members and colleagues. Rather it is the consistent response of individuals/leaders within the church-mission community: unwillingness to investigate or get informed, fear of reprisals, self-protection, and discrediting those calling for transparency and accountability, all at the expense of vulnerable people. It is time to change this course and to act with moral courage and united strength.

*****

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Awakening Virtue (October-November 2011)

A Call for Courage:

Missing Money and Missing Action

“We are deeply concerned about the Nordic Capital Investment (NCI) scheme which is currently being investigated and prosecuted. This scheme has seriously harmed many individuals, families, and organizations, especially in the international church-mission community (CMC). People have lost their life savings, organizations in the international CMC have suffered from questionable personnel practices and ineffective governance, and humanitarian projects have been financed with dubious money. Millions of dollars (the composite in many currencies) have been involved. We believe that in addition to the court cases and media coverage, there is a critical need and responsibility for the international CMC to discuss, investigate, and address the effects of the NCI scheme and related issues that have evolved alongside it.” PETRA Statement 2011

NCI Trial Update

 According to a media source in Sweden, the NCI appeals trial in Stockholm began 13 September and is scheduled to be finished by 21 October. The Defense and Prosecution appear to be presenting no new evidence since the initial court case in Uppsala in September 2010. Nor are there new charges. The trial is thus said to be more or less a replay of the case from Uppsala and testimonies from Uppsala are shown again via the video-recordings. It takes about a month after the appeals trial for the written verdict to be released, So perhaps by late November there will be a final verdict (focusing on the previous verdict about the fraudulent and criminal actions of Mr. Westergard/NCI).

Reflection 1:

Perhaps there may be some additional information used and unexpected outcomes in the appeals trial. And perhaps other investigations will in fact build upon Sweden’s narrow focus of this international case. Both the Prosecution and Defense have lots of information about the fraud that involves others and money flows to others---if they choose to use it. Has Mr. Westergard fully disclosed the purposes and money flows for NCI? Other parties involved have yet to verifiably disclose the details of all the NCI-related money received and the various types of involvement. And no one is holding these parties accountable to do so.

Again we ask, where did the money go and what are people doing about it?

Reflection 2:

How thorough and accurate are the June 2011 Statements from the Mercy Ministries Boards and from the European Evangelical Missions Association (EEMA)? They say nothing specific about the major money flows and hence a major part of the full story is missing. The EEMA’s authoritative public Statement of 13 June 2011, saying that “Le Rucher has not benefitted from this fraud in any way.” omitted this sentence entirely in its revised authoritative Statement issued the next day on 14 June 20l1. The additional declaration that “We believe the mission community has fully investigated this matter and that the guilty have been successfully prosecuted through the courts” is also perplexing, in light of the court case still being in progress as well as there being no body in the mission community that has independently or otherwise professionally investigated this case. If so where is the report? Contact these organisatons to read their Statements, including the inital one from 13 June 2011 from the EEMA.

Again we ask, where did the money go and what are people doing about it?

Reflection 3:

The Mercy Ministry Board members and past members (many who have been approached to invest in NCI over the years and some who in fact did so) would do well to authorise an independent investigation and especially to disclose the money flows to and from Mercy Ministries and the special NGF account that was set up. Why is this not being done, and in light of the money-flow-related records from the EBM and the Uppsala court?  This is money that belongs to investors-victims and needs to be returned. For more information/documents see Information and Observations about NCI and Suggestions: Going Forward (point six) on the PETRA People website.

Again we ask, where did the money go and what are people doing about it?

Reflection 4:

**Youth With A Mission—senior leaders as well as staff—would do well to also authorise an independent investigation (as called upon by the Petra Statement 2011 signatories and others). Not doing so simply continues to raise serious questions about how the organization is affected by NCI and their responsibility. For more information/documents see the recent letter asking YWAM leaders for assistance and the previous letters asking for assistance on the PETRA People website.

**The same is true of Mercy Ships in light of EBM and court documents that indicate that they were to benefit in a major financial way from NCI. They too have been called upon to verifiably investigate and disclose.

**People also in the church community in the Geneva area—including Crossroads Church in Ferney-Voltaire where NCI was promoted to the former senior pastor and other leaders and members over the years. Some Dutch churches too where NCI was promoted. Disclose, clarify with verification, and help. Click here to see two letters to the churches and church leaders requesting help, on the PETRA People website.

**Youth for Christ Switzerland whose address by an NCI administrator was used to conduct a substantial amount of NCI business for several years.

See the web entry from 24 May 2011 for more details.
Again we ask, where did the money go and what are people doing about it?

Reflection 5:

Ruth van Reken’s sensible voice is worth repeating here via her comment on this weblog. (She is an international consultant in the expatriate sector and co-author with Dave Pollock of the TCK Experience).

 
“To me, it seems relatively simple. Those who have nothing to fear should welcome an open investigation into all of these matters and be the first to open their books to the public, both individuals and organizations who were sadly caught up in this mess, “winners” and “losers” alike. If this reiterates the New Era Ponzi scheme that happened a few years ago, undoubtedly some individuals and organizations profited while others lost simply because of the nature of a Ponzi scheme. As we all know, these schemes keep going because initial investors do, in fact, receive money received from the next investors down the line. Again, the presumed fact that some gained in this scheme doesn’t imply legal culpability or any sort of complicity for those who received gain. But we have a good model with the New Era scheme. There all involved met and set up a formula so those who had gained at the expense of others could share in some equitable fashion with the losses by returning a portion of the gains. Why could there not be such an attempt in this situation?"

"This, then, is my bottom line question for all involved…Petra People, those they question, all NCI financial ”winners” and “losers” alike, the Christian community itself. What would Jesus do here? Surely the Shepherd who Is the Way, the Truth, and the Life wants to lead us all into a place where He is glorified and the work of darkness defeated.”

Again we ask, where did the money go and what are people doing about it?

Reflection 6:

NCI is not over. It is still very much alive. It will continue to plague the CMC unless responsible parties do something about it. Without transparency and accountability and good people taking action, this monster will never be laid to rest. It is not just enough to raise one’s voice once or twice or ask a few questions or wait for some governmental body or Christian organisation to take action or to not take action. Resolutely confronting this corruption with others as long as necessary is required. A dark, sad shadow has been cast over the CMC for nearly two decades now. The issue though here is not the shadow. Rather it is the source of the shadow.

Again we ask, where did the money go and what are people doing about it?

Reflection 7:

Acting with moral courage is often risky. Our resilient virtue is stronger than resilient evil.

Again we ask, where did the money go and what are virtuous people doing about it?

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NCI: The Whole Picture (August-September 2011)

"It's crystal clear the Swedish case is not the whole picture.

It's different people, different victims, and different contexts."

Dr. Todd Johnson, Christianity Today article on NCI, June 2011

These three virtues above are needed to confront corruption.

So what is the "whole picture" regarding NCI? And what are the responsibilities of the "different people, different victims, and different contexts?" How do we in the church-mission community (CMC) and beyond get accurately informed, and act with and call for verifiable transparency/accountability? How do we resolutely pursue good practice for financial integrity as exemplified in the sixth principle of the Granada Covenant which says:

"We commit ourselves to financial integrity. We accept our responsibility as stewards of God’s resources. We will reveal our funding proposals and open our personal financial records to trusted colleagues for their critique. Our corporate financial books will be evaluated by competent accounting firms who can examine our finances and by courageous colleagues who can evaluate our motives and processes as we raise, account for and utilize funds." WEA-MC Granada Covenant 2006

Consider these three suggestions.
Suggestion 1: Get accurately informed, starting with the suggested materials for an overview from the PETRA People web site (reproduced below).

Suggestion 2: Call for verifiable transparency and accountability within your sphere of influence and perhaps beyond--following the example of the 20+ signatories of the PETRA Statement: A Call for Transparency and Accountability

Suggestion 3: Keep going until the "whole picture" is brought into the light. This includes money flows, different involvements, and how people/projects/organisations have been affected. Be prepared to face all kinds of reasons for people not having to get informed, not disclosing, and not doing anything. Be prepared for spin and half-truths. And be prepared to have your motives questioned, your character discredited, and possibly even worse things. 

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 How to get a quick overview about NCI

(from the PETRA People web site)

 There are five core documents to orient you to the NCI scheme and what can be done.

1. PETRA Statement: A Call for Transparency and Accountability

2. NCI Summary Information (10 core points---update on the Swedish court case, Feb 2012)

3. Fleecing the Faithful--Again (online article from Christianity Today about the NCI scheme, June 2011, including reader comments)

4. Information and Observations about NCI (some of the investors, roles, and money flows)

5. Suggestions: Going Forward (10 core points)

Note: Also see the money flow docs:

Some NCI-related Money Flows Verified by EBM (March/April 2011)

Some Examples of NCI Money Flows to and from MM/NGF et al (organized by year)

Some Connections with People, Organizations, and Ministries (examples)

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Fleecing the Faithful--Again: Former YWAM Leader Defrauds Many (June and July 2011)

Responses to the Christianity Today Article 

(published in print and online June 2011)

click here to access the online article

At last, a respected periodical has done an article

on the Nordic Capital Investment scheme (NCI).

Did the article help you understand NCI and fraud better?

Is there other information you would like to clarify or include? 
Comment below!

Three essential and disturbing items still linger for us after reading the article:

1. Where is the money--and will this be acknowledged and further traced?

Significant NCI money flows, based on court docs, were going to places such as Mercy Ministries International and New Generation Foundation, including money that went to Le Rucher. This is money that belongs to investors-victims and needs to be returned. For more information/documents see Information and Observations about NCI and Suggestions: Going Forward (point six) on the PETRA People website.

2. How has YWAM been affected--and will there be an independent review?

The comments of Lynn Green, YWAM's spokesperson and (former) International Chair, regarding NCI and YWAM are very hard to understand in light of the court documents and others' testimonies/statements.  For more information/documents see the recent letter asking YWAM leaders for assistance and the previous letters asking for assistance on the PETRA People website.

3. Who are the people involved in setting up and running NCI--and when will this more fully be investigated?

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Requests for Assistance (May 2011)

Healing the Body

Detail of a weeping angel--supporting Christ's broken body.

(Da Messina)

In light of the PETRA Statement, we strongly urge the following organisations to provide assistance by reviewing and disclosing how NCI has affected them. It is not appropriate—ethical—to simply try to “move on” and the leaders in these organisations have a crucial responsibility to help. We also encourage them to review how they have responded to the NCI matter. How have they been “affected” and how have they responded? There is much to learn and many ways to help themselves, victim-investors, as well as the church-mission community (CMC).

1. The Mercy Ministry Boards related to Le Rucher Ministries (including past and current Board members). This is especially important since there has been no independent audit and public disclosure of the NCI-related money that has gone to/from Mercy Ministries international and New Generation Foundation.  According to Swedish documents from the national Economic Crimes Bureau (EBM), there have been hundreds of thousands of dollars.

2.  Youth With A Mission (YWAM) senior and International Leaders. NCI is an affinity-based scheme and YWAM is the main organisation that has been affected. Major YWAM leaders have invested since at least 1999 and YWAM projects have received NCI-related money. Senior leaders have consistently denied that senior/international leaders were aware of NCI and  that one of the major YWAM leaders actively involved  in NCI (administering contracts, receiving NCI funds, etc) was not properly part of YWAM (nor was this person’s YWAM organization).  Hence there is no YWAM responsibility. All of these assertions are thoroughly contrary to the documentation which is presented on this web site. YWAM leaders internationally are urged yet again to get informed and to call for/set up an independent review, and to hold their senior leaders accountable.

3. Mercy Ships. An Austrian court document from 2001 and other EBM documents indicate that Mercy Ships (part of YWAM until 2003) was to benefit from NCI funds related to a three million US dollar transaction that was frozen by the Austrian government in November 2001.  How does this transaction and other NCI-related money flows relate to this respected organization and especially the refitting of the African Mercy? Note this is not an accusation but just a core unanswered question that has yet to be investigated.

4. Youth For Christ (YFC) in Coppet, Switzerland. YFC’s physical address was used for a substantial amount of NCI-related correspondence. Why? YFC is a respected organization yet has not fully investigated and verifiably disclosed what their relationship was with NCI and any possible benefits.

5. Churches in The Netherlands and in France, especially Crossroads church in Ferney Voltaire, France. Members of and people attending Crossroads church were approached to invest in NCI and many of them have done so over the years. The former pastor for example was approached to invest in 1995. This respected church has yet to inform their congregation (past and current members/attendees) about NCI and sought out information from them to help.

6. Many investors and people overseeing projects receiving NCI money have stayed silent and not shared openly about NCI. Some of these investors have had three or more contracts with NCI (e.g., contracts related to other investors’ contracts, contracts for ministries and receiving NCI-money related to the people they have brought into NCI. The NCI Analysis section of this site could be an appropriate place to share such disclosures.

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Your Initial Input (April 2011)

What do you think of the PETRA People web site and the PETRA Statement?

What do you suggest is a good way forward for dealing with the NCI case?

"As people work together to share factual and professional materials on this site,

the church-mission community will be healthier

and better equipped to deal with corruption."

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Welcome to the PETRA People Blog!

Discussing health and corruption in the international Christian community.

Discussing information/updates from the PETRA People web site.

https://sites.google.com/site/petrapeople/