NCI Executive Summary
PROFSSIONAL REVIEW
NCI EXECUTIVE SUMMARY
Rand Guebert
This material is strictly confidential.
It may not be reproduced in any way or shared without the explicit
written permission of Dr. Kelly O’Donnell and Dr. Michèle Lewis O’Donnell.
*****
[Note: Because the government investigation is
ongoing, this Summary is only current as of the above date and does not contain
certain information that is sensitive.]
Beginning in 1998 Kelly and
Michele O’Donnell were offered the opportunity to participate in an investment
programme run by Nordic Capital Investments KB (NCI) based in Sweden. These investments were offered, promoted and
initially administered by a respected colleague/leader in YWAM named Erik
Spruyt, who is the founder and director of the Le Rucher ministry center near Geneva , Switzerland
According to the contracts that
were signed by the O’Donnells these investments would earn 15% per annum as
well as generate additional earnings for Christian ministries.
The O’Donnells received some
funds back in 2001 in order to help purchase a house and received smaller
payments on two other occasions. There
were no apparent problems until June 2006, when Westergard told the O’Donnells
that their request to end their contract was not valid. By the summer of 2007 it was evident that the
money was no longer available and that the investments were part of a Ponzi
scheme. Government fraud offices in four
countries were notified and investigations commenced in The Netherlands and Sweden
The O’Donnells took on an extra
responsibility in attempting to warn YWAM about the effects that NCI could have
on their staff and reputation. Various
other people both inside and outside of YWAM also approached the YWAM
leadership to challenge them about their involvement in this fraud. YWAM’s approach to these contacts was to
distance itself from NCI, Spruyt and Westergard at every opportunity, and
subsequently to try to discredit and then dismiss Kelly O’Donnell.
In November 2007 the Dutch TV station
TROS made NCI the subject of one edition of it’s Opgelicht crime show. The same day two major Dutch newspapers
carried front-page stories about this fraud.
In February 2008 one of the
investors unexpectedly gained possession of an Austrian court document
detailing the involvement of Spruyt and Westergard (and perhaps Mercy Ships) in
a rather dubious commercial transaction involving a prominent Genevan
businessman.
In the summer of 2008 information
was arising which seemed to indicate that NCI funds may have been used
primarily to help finance a specific multi-million dollar Christian
project. The investigations are ongoing
and the investors hope for justice and the return of their money.
What observations, conclusions and
recommendations can be
drawn from
these events and the accompanying narrative?
- The love of
money is the root of all evil? (1 Tim. 6:10)
While investors may be naïve or
inexperienced, Christian organizations and their leaders can be tempted to take
advantage of this naivety with dishonest and deceptive schemes. NCI/SDI and its originators and managers
succumbed to this temptation. Further
evil has been perpetrated by YWAM leaders and others who have sought to shield
NCI’s managers from accountability and restitution.
It is almost a cliché to urge
caution and prudence. It is also a
cliché to say that, ‘if something is too good to be true, it probably is.’ Wise personal management and stewardship of
money is a subject that is much neglected in Christian life.
Financial management is also
often weak in Christian ministries—it is not honored as much as worship leading
or preaching and organizations often do not want to “spend money” on
administration. Christians are also
often reluctant to hold their leaders responsible for good financial
practices. The goal must be to have just
enough administration to achieve accountability and efficiency—there must be a
counterweight to the temptation of leaders to misuse money.
Most Christian ministries are
labor intensive and most mission organizations today place the financing
responsibility on the workers themselves.
These organizations take on minimal financial commitments. However, a capital intensive ministry with
high operating costs has a constant demand for funding without perhaps
generating any revenue of its own. In
ministries such as this, trouble raising money may be a red flag. Without an endowment to fall back on, the
pressure to raise money may become too great to resist the rationale that “ends
justify the means”.
Christians as well as Christian organizations need to (1) devote
sufficient time to learning the wise stewardship of money and (2) have adequate
accountability for monies raised and spent.
There should be no excuses for the lack of timely and informative ministry
accounts—a ministry that cannot account for its money does not deserve to have
it. No Christian ministry or leader
should think that “their ends” justify “other people’s means”—this is simply
arrogant and deceptive.
- Christian
leaders have a major moral responsibility to honor the trust that people
place in them.
If Christians cannot trust their
leaders then the body of Christ cannot develop.
Trust is lost when Christians and their ministries fail to balance
justice and mercy in their relationships and activities. Trust is lost when charm and communication
skills are confused with spirituality.
Trust is lost when vulnerable people are manipulated, discredited,
harassed and deceived. Trust is lost
when accountability is sidestepped.
Christian leaders must be
examples to others, especially in difficult circumstances. Christian ministries in general are often
tainted by the lack of integrity exhibited in a specific ministry. It is in the interest of the Body of Christ
that corruption in Christian ministries is confronted and purged.
Christians need to take a stand against corruption and unethical
practices in their own back yards.
Christians must also be wise enough to hold their leaders accountable
for their teaching and behavior. No one
should have to obey a leader he/she does not honor or respect. Every organization should have suitable and
effective grievance procedures. YWAM
should be held accountable for its treatment of the O’Donnells, who have
consistently acted with integrity in attempting to report the NCI fraud to
them.
- Christian
ministries, such as YWAM, need effective corporate governance.
Christian leaders cannot hide
behind the concept that they are only accountable to God. This is simply a recipe for abuse. Authoritarianism is a common leadership
style, but it has dangerous managerial implications. Being a “strong” leader is not a
justification for abusive treatment of staff.
Christian workers should have the same safeguards in the workplace as
their secular equivalents—effective grievance procedures, whistleblower
protection, etc. Nevertheless, it is
important to remember that good procedures can never replace good management.
When serious issues do arise in
an organization, and they arise in all organizations at some time, effective
corporate governance is necessary to see that these challenges are confronted
in a responsible, transparent and humane manner. It is the remit of leaders to address
problems ethically and professionally.
Also, conflicts of interest seem
to be rampant in the Christian world. To
say that they are unavoidable does not make them right. Most secular organizations have rules against
nepotism for a reason. If Christian
ministries cannot maintain adequate accountability and independence, probably
there should be a reevaluation of goals and objectives.
If a Christian ministry wants to
be a family business, or a family business wants to be a Christian ministry,
this should be recognized as such and those who join as staff should not be
under any illusion as to where accountability and decision making power lies.
Christian ministries should have the same corporate governance
requirements as secular organizations.
Accountability to God is not an acceptable alternative and is not
acceptable to governments. Pretending to
be accountable to a weak board of directors is also not acceptable. YWAM and The Board of Directors of Le Rucher
should each take responsibility for their lack of appropriate oversight of Le
Rucher management and lack of concern for former staff. All Christians have a stake in demonstrating
ethical behavior.
- When a person
or group has an important problem to solve, getting professional advice is
very important.
For Christians, spirituality is
not a substitute for professional advice.
Periodically we all need the advice and counsel of others wiser and more
knowledgeable than ourselves. Care
should be taken to choose experienced and competent advisors.
Significant organizational
problems, of the kind faced by the O’Donnells, require patience, perseverance,
and prudence to confront. Many people
simply do not have the resources available to confront some types of
issues. There is certainly an aspect of
“counting the cost” in addressing any specific challenge that includes systemic
and personal dysfunction, harassment, fraud, corruption and criminality.
In confronting fraud or other
illegal activities in an organization or group there are time-tested, well
known procedures and good practice for taking action. It should not be asking too much for both
leaders and staff to utilize these procedures and guidelines. Wise advisors will almost always provide a
sense of confidence and realism.
In every case though, a person is
always responsible for his/her own life—he/she cannot delegate this
responsibility to an advisor, and no advisor should attempt to take this
responsibility without clear evidence that particularly vulnerable people are
involved, who need significant measures of advocacy and support to protect
themselves.
Christians should never be afraid to seek wise and competent
professional advice. Any healthy
Christian ministry will encourage its staff to do this. YWAM should
be no different. Every person
must take responsibility for his/her own life and for using the professional
advice that he/she is given.
- When it is
necessary to use the criminal justice system, patience and forbearance are
required.
Even for Christians there are
indeed circumstances when it becomes necessary to use the criminal justice
system. Inadvertently, Christians may
become involved with criminals, even criminals masquerading as Christians, in
which case the professional assistance of the police is needed in dealing with
the circumstances.
Nevertheless, the criminal
justice system often has many drawbacks—it is often not efficient or timely, it
is often under-staffed and under-resourced, and it is often politicized. These observations should be seen as
fostering realism rather than excuses for not using the services of the police.
Also if there is a case involving
multiple plaintiffs, additional challenges are created by the perhaps differing
priorities and circumstances of the various plaintiffs. It is realistic to recognize that plaintiffs
will have differing objectives and this should be respected rather than
criticized or manipulated.
Christians should see the criminal justice system as another type of
“professional service” which they may need to utilize in the unlikely event
that they become involved with criminals.
Moreover, society as a whole has a vested interest in seeing that
criminals are brought to justice and any losses restored.
*****
YWAM has important issues to address related to corporate governance,
financial accountability, and staff management.
YWAM needs to demonstrate to itself that it is able to care for itself
as an organization and not be victimized by authoritarian and deceptive
leaders.
[Click HERE to access the NCI Narrative and Analysis, pp. 27-46]
[Click HERE to access the NCI Narrative and Analysis, pp. 27-46]
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