….but in a good way.

About 1,800 faithful supporters, who came to the aid of the Roman Catholic Diocese of Victoria when it was rocked by a multimillion-dollar financial scandal six years ago, have been repaid with interest.

The diocese has managed to sell a 65-hectare parcel of land in Washington state, known as the Lacey lands, for $14.875 million US. The land was at the centre of a high-stakes development venture gone wrong that left the diocese mired in a $17-million debt.

Proceeds from the sale have been used to repay the supporters who bought $13 million in bonds in 2000 to help the diocese pay off the land debt.

"I’m happy," Victoria Bishop Richard Gagnon said yesterday. "The diocese is grateful that the land sold and that the debenture holders can see their investment realized over six years. And for the diocese itself, it removes a certain liability."

But the diocese’s financial difficulties are far from over. In a letter to parishioners, which was read at mass this weekend, Gagnon said the diocese continues to feel "serious financial pressures as a result of its dealings in Washington state."

The problems began in the 1980s and 1990s, when, under the leadership of former bishop Remi De Roo, the diocese ran up the $17-million debt through an Arabian horse venture and the high-risk land project.

Between 1988 and 1992, the diocese invested about $2 million in the Arabian horse deal with Seattle lawyer Joseph Finley.

About $1.5 million came from a trust fund — the Priory Trust — set up after a Vatican-ordered sale of assets. The investment deteriorated and the money was lost.

You might want to read the whole thing. It’s an astonishing mess. Which you might have discerned from the "Arabian horse deal" part.