From: Darrell128 Date: Mon, 2 Mar 1998 17:23:01 EST Mime-Version: 1.0 Subject: NR 98006: Cl. Chatham Asks Top CRC Board to Appoint Independent Investigators of NR #1998-006: Classis Chatham Asks Top Christian Reformed Administrative Committee to Appoint Independent Investigators of $11.5 Million in Questionable Investments What should the Christian Reformed Church do now it has discovered that $11.5 million of its money is invested in California real estate that has stopped making payments to investors? Classis Chatham answered that question at its January 27 meeting by asking the CRC Board of Trustees "to appoint an independent investigative team to investigate the investment of our denominational agencies in IRM." IRM is an interlocking network of limited partnerships that deals primarily in California real estate. The organization is headed and administered by Christian Reformed people - a number of whom are laymen who hold or have held top positions on various denominational boards - and the vast majority of its funds come from Christian Reformed members and agencies. Since December, the organization has come under intense scrutiny after it stopped making payments to its investors. NR 1998-006: For Immediate Release: Classis Chatham asks Top Christian Reformed Administrative Committee to Appoint Independent Investigators of $11.5 Million in Questionable Investments by Darrell Todd Maurina, Press Officer United Reformed News Service LONDON, ONTARIO (January 29, 1998) - What should the Christian Reformed Church do now it has discovered that $11.5 million of its money is invested in California real estate that has stopped making payments to investors? Classis Chatham answered that question at its January 27 meeting by asking the CRC Board of Trustees "to appoint an independent investigative team to investigate the investment of our denominational agencies in IRM." IRM is an interlocking network of limited partnerships that deals primarily in California real estate. The organization is headed and administered by Christian Reformed people - a number of whom are laymen who hold or have held top positions on various denominational boards - and the vast majority of its funds come from Christian Reformed members and agencies. Since December, the organization has come under intense scrutiny after it stopped making payments to its investors. "We're asking for the appointment of an independent outside investigator, independent of the agencies and independent of the board," said Rev. Robert Haven, pastor of Good News CRC in London, Ontario, and author of the proposal. Rev. John Hellinga of Aylmer (ON) CRC concurred. "I should note that some men in the Grand Rapids area with significant business expertise tried to warn them not to make these investments six or seven months ago," said Hellinga. "I feel that a lot of goodwill would be generated if those responsible for the mistakes would simply step down and say, Let's appoint an independent committee to study this and see how this tragic situation can be resolved.'" Rev. Peter VanderBeek of Forest (ON) CRC didn't agree. "My understanding is that there has already been an acknowledgement that procedures have not been followed and they did wrong," said VanderBeek. "I don't see the wisdom at all of appointing vultures to go in and point the finger and say, You did wrong.'" "I would object to calling people vultures' if they go in and do an investigation," responded Haven. "The board could appoint people of character who could go in and do this without self-interest and not be second-guessed as to their motives." Other delegates asked whether the classis should ask for a broad investigation or whether the proposal needed further clarification of its intent and scope. "I would say a far-ranging investigation because if there is criminal intent we would want to know that, if there is lack of good management we would want to know that," said Haven. "I would plead for as broad a range of investigative power as possible, not for voyeuristic reasons, but so if there is something wrong, we find out about it so we can do something about it." Classis eventually decided to submit the motion directly to the February meeting of the board of trustees rather than overturing synod on the matter. "If we overture synod to do this, synod is going to pass it and instruct the Board of Trustees to appoint a committee," said Rev. Peter Nicolai of Grace CRC in Chatham. "Why don't we go to the Board of Trustees directly and ask them to appoint a committee? That way we can do it faster." CRC executive director of ministries Dr. Peter Borgdorff said he first learned of the motion during the classis meeting when one of the delegates called him for advice, and hadn't yet seen the printed text. "The board will no doubt address the Classis Chatham request and prepare a response, either by doing what they request or by not doing it and giving reasons why not," said Borgdorff. "The board meets in four weeks, we will no doubt take it up as a matter on our agenda. Barring any new information, the board has been very confident of the creditors committee which is dealing with the IRM matters per se." "We have just adopted a new investment policy which has been in the making for some time and coincidentally reached the board at the same time the IRM matter broke," said Borgdorff. "We believe all of the known deficiencies that led to the IRM policies are addressed by the new policy." Borgdorff confirmed that three CRC agencies have approximately $11.5 million invested in IRM: $8 million by CRC Home Missions, $1 million by the Back to God Hour broadcast ministry, and $2.5 by Calvin College. "It's a small percentage, less than five percent, that is denominational investment," said Borgdorff. "The total investors are in excess of 1500, the vast majority of them are ordinary members of the Christian Reformed Church." At present the creditors owed money by IRM have organized a "creditors committee" to represent their interests. The committee, chaired by CRC finance director Kenneth Horjus, has travelled to California, met the IRM administrators, and is preparing a response to the potential fund loss. Cross-References to Related Articles: [No related articles on file] Contact List: Dr. Peter Borgdorff, Executive Director of Ministries, Christian Reformed Church 2850 Kalamazoo Ave. SE, Grand Rapids, MI 49560 O: (616) 246-0832 * H: (616) 957-3288 Rev. Robert Haven, Pastor, Good News Christian Reformed Church RR #1, Dorchester, ON N0L 1G4 O: (519) 268-3785 * H: (519) 268-8403 * FAX: (519) 268-8403 * E-Mail: bhaven@sympatico.ca Rev. John D. Hellinga, Pastor, Aylmer Christian Reformed Church 8 Sinclair Cres., Aylmer, ON N5H 3B7 O: (519) 773-3025 * H: (519) 773-8250 * FAX: (519) 773-3043 * E-Mail: hellinga@kanservu.ca Rev. Peter Vander Beek, Pastor, Forest (ON) Christian Reformed Church Box 1434, Forest, ON N0N 1J0 O: (519) 786-5117 * H: (519) 786-5822 * E-Mail: vdbeeks@mail.xcelco.on.ca ---------------------------------------------------------- file: /pub/resources/text/reformed/archive98: nr98-006.txt .