From: Darrell128 Date: Wed, 6 May 1998 07:28:42 EDT Subject: NR 98028: Cl. Lake Erie Overtures CRC Synod to "Ensure the Editorial Freedom of the Banner" NR #1998-028: Classis Lake Erie Overtures Christian Reformed Synod to "Ensure the Editorial Freedom of the Banner" When the Christian Reformed Board of Trustees banned The Banner from reporting on the potential loss of $11.5 million in denominational funds invested in the California-based IRM real estate corporation, it didn't stop the story from getting out. Despite the directive, news of the potential multi-million-dollar loss reached Christian Reformed members via widespread leaks and a front-page article in the Grand Rapids Press. The CRC Board of Trustees eventually lifted the publication ban on The Banner, but that didn't end the story. Now Classis Lake Erie, the last classis in which Suk pastored before becoming Banner editor, is overturing the synod to "declare that synod exercises its authority over The Banner editor through CRC Publications" and to "ensure that the editorial freedom of The Banner, outlined in the guidelines presented to Synod 1993, be protected." Banner editor Rev. John Suk responded cautiously to the overture. "I think the Christian Reformed Church deserves exactly the sort of denominational magazine it wants and I'm sure one way or another it will get that," said Suk. "If synod would like to talk about that, it's wonderful." NR 1998-028: For Immediate Release Classis Lake Erie Overtures Christian Reformed Synod to "Ensure the Editorial Freedom of the Banner" * Overture follows suspension of payments on $11.5 million CRC investment and Board of Trustees directive "that the denominational agencies and institutions, as well as its periodical, The Banner, will refrain from public comment on all matters related to IRM except that approved by representatives of the Investment Oversight Committee." by Darrell Todd Maurina, Press Officer United Reformed News Service EAST LANSING, MICH. (May 4, 1998) URNS -- When the Christian Reformed Board of Trustees banned The Banner from reporting on the potential loss of $11.5 million in denominational funds invested in the California-based IRM real estate corporation, it didn't stop the story from getting out. Despite the directive, news of the potential multi-million-dollar loss reached Christian Reformed members via widespread leaks and a front-page article in the Grand Rapids Press. The Banner didn't take the publication ban well. In an internal memo obtained by United Reformed News Service along with over a hundred pages of memos and other correspondence, CRC Executive Director of Ministries Dr. Peter Borgdorff warned the editor not to test the limits of press freedom. "I know that you raised the issue of control over editorial judgment and prerogatives," wrote Borgdorff. "If need be we can discuss that further. However, I advise you against testing the boundaries on this one at this moment. It is very clear to me, if not to you, that a premature piece by The Banner could be most unfortunate and would cause great consternation among those who are working on this on behalf of the CRC and other agencies." Borgdorff confirmed the accuracy of the quote, but said it had been "inappropriate and unethical" to release the memo to the news media and to CRC-Voices, the denominational E-Mail listserv. "That was a private communication to John Suk within the normal channels of communication," said Borgdorff. "I was just aghast that a private memo should be leaked. I've talked to John Suk and he said he didn't release the memo, and I don't know who did. I find it personally reprehensible for people who do not have authority to release that information." The CRC Board of Trustees eventually lifted the publication ban on The Banner, but that didn't end the story. Now Classis Lake Erie, the last classis in which Suk pastored before becoming Banner editor, is overturing the synod to "declare that synod exercises its authority over The Banner editor through CRC Publications" and to "ensure that the editorial freedom of The Banner, outlined in the guidelines presented to Synod 1993, be protected." In its grounds, classis notes that "on October 27 all IRM investors received a letter concerning this matter, and immediately after that a number of stories were being circulated." "A report by our denominational publication would have been very beneficial in placing this matter in perspective and in defusing some of the rumors connected with it," continued the overture. "Because The Banner was not allowed to report on the story, information about it came via the secular media, and the denomination looked like it had something to hide." Classis also cited a 1993 set of editorial guidelines for The Banner which state that "the editorial staff must be granted the freedom to inform its readers and subscribers about what is occurring in the church (including relevant problems, needs, and concerns) even though some persons, congregations, or agencies may prefer that such information not be disseminated." "We are very thankful that the ban on The Banner's reporting has been lifted," concluded the overture. "We believe that the placing of such a ban violated existing policy and was uncharacteristic of our denomination's relationship to The Banner." Lake Erie Blames Borgdorff and Power Centralization The overture originated with a report on the IRM reporting ban by board of trustees member Rev. Alvin Hoksbergen, who told Classis Lake Erie that he expected it would take three to five years to recover the CRC's investment in IRM, if any recovery is made at all. "Nobody is willing to give an answer, but at this point as I hear people talk, it sounds rather grim," said Hoksbergen. "It's very bad, not only for the agencies which stand to lose money, but also for retired persons who had invested all of their money there." Much of the discussion at classis focused on the role of Dr. Peter Borgdorff, CRC Executive Director of Ministries, in the decision to ban The Banner from reporting on the IRM situation. "The EDM is assuming significant authority to speak on behalf of the denomination in a way we have never had before," said Rev. Richard Hamstra, pastor of Olentangy CRC in Columbus, Ohio. "It's hard for me not to think of the word "pope' over what were previously independent agencies." "The EDM feels that when the restructuring takes place and the publications are under the authority of the Board of Trustees, just as the synod has the right to say The Banner may not print something, the Board of Trustees also has the power to say The Banner may not print something," Hoksbergen responded. Dr. Clayton Libolt of River Terrace CRC in East Lansing spoke even more strongly on Borgdorff's role. "What I see in Grand Rapids is we are centralizing, pulling in more and more authority, and pulling the denomination in exactly the opposite direction it should be pulled," said Libolt. "I know the EDM is a powerful man, a competent man, and has the good of the church in his heart, but the Board of Trustees has to be told in the strongest possible terms that the Board of Trustees has its limits." "We don't want a ban put on The Banner, we want it to have its freedom, so The Banner isn't a propaganda piece for the denomination," said classical stated clerk Pastor George Vander Weit. "It's kind of embarrassing that the Grand Rapids Press and the secular media had to break this story. It makes us look like the Christian Reformed Church has something to hide." Hamstra emphasized that The Banner problem is just a symptom of a larger issue. "The problem is we have a juggernaut as our EDM; unless we take the time to investigate this whole restructuring program and go after it right now, we've lost our ability to go after it anytime in the future," said Hamstra. "I think the current EDM is a great guy, but what about the future? What about the next guy? I don't think the current EDM will live forever, at least on this earth." Later in the session, a classical committee redrafted a letter into an overture which was eventually submitted to synod. Classis heard only a few dissenting voices, notably Rev. Richard Loerop of Imlay City (MI) CRC. "What happened with The Banner editor being censored, I'm not in favor of that, but I'm uncomfortable with the speed with which this is progressing," said Loerop. "We haven't heard a lot from the other side that thought this was a matter of wisdom. I would like to hear more of what went on at the board to lead them to do this. There was only one dissenting vote, and we should think seriously about that." Loerup's concerns didn't prevail, however. "As I understand, the argument in favor of this was this was a sensitive matter, it could create a panic if false information got out about this collapse of IRM," said Libolt. "Also, they got legal advice that The Banner, as an official publication of the Christian Reformed Church, published something about this, it could produce lawsuits." "Not only do you have the appearance of managed information, which in our culture is always viewed as a wrong thing, you not only don't avoid lawsuits, you attract them," said Libolt. Response to the Lake Erie Overture After reviewing the overture, Borgdorff said he didn't think its language would have made a difference even if it had already been adopted. "The overture doesn't ask for anything that isn't already the case, inasmuch as The Banner already operates under the general oversight of the Board of Publications," said Borgdorff. > "I presume classis wants to say nobody else exercises any authority or oversight," said Borgdorff. "When Synod in 1993 and 1996 defined the mandate of the Board of Trustees, The Banner was not exempted from that, and in fact Synod said the board could enter the administration of any of the agencies." According to CRC Board of Trustees president William Weidenaar, the 1993 guidelines regarding the editorial freedom of The Banner apply to ordinary situations, not extraordinary situations such as that faced by the denomination in light of a potential multi-million dollar investment loss. "To take this extraordinary circumstance and to sort of hone a general principle from it is not wise," said Weidenaar. "The board has never interfered with the publication of anything in The Banner except with regard to the situation I just described. Would the board ever again do that? The circumstances would have to be extraordinary and I can't imagine what it would be, maybe a situation where we had another announcement that a firm would not be making payments on $20 or $30 million in investments." What else could constitute an "extraordinary circumstance?" "I don't want to restrict the extraordinary circumstances to commercial situations," said Weidenaar. "For all I know it may be a non-financial circumstance that has an extraordinary character. I think the history of the board, the history of the administration of The Banner, speaks for itself." Weidenaar, himself a Chicago-area attorney, noted that the denomination made its decision on the basis of legal advice. "By early November the denomination, the Board of Trustees through the executive committee, had convened an investment oversight committee which consisted of various agencies of the CRCNA which had investment in IRM, and also the CRCNA extended an invitation to similarly-minded groups that were not denominational agencies, Barnabas, Trinity Christian College, Dordt College," said Weidenaar. "When that committee convened in early November, that committee had a lawyer present who is conversant in financial reorganization matters," said Weidenaar. "The law firm of which that lawyer is a member issued a letter; the gist of the letter was since The Banner is a publication of the Christian Reformed Church, matters that appear in The Banner could or might be taken to be the position of the Christian Reformed Church." "Under those circumstances and in light of our then state of knowledge with regard to the whole IRM situation, the lawyer's advice was that the Board of Trustees ought not to permit The Banner to do any kind of reporting on the IRM matter lest statements that appear in The Banner be attributed to the Christian Reformed Church or in any way construed to be inconsistent or detract from the position of the Board of Trustees," said Weidenaar. "We published a statement immediately after that was published in The Banner that said we are committed to disclosure but because of these legal restraints it just was not possible to allow The Banner to publish." According to Weidenaar and other reports, the CRC Board of Trustees, the Board of Publications, and investment committee continued discussions on whether the publication ban should be lifted. "When we got into late January, our focus on the IRM situation, though not complete, was much sharper than it was in November," said Weidenaar. "We came to the conclusion that because of what we knew in late January, the directive really had served its purpose and was no longer useful. As a board committee we reported to the executive committee that we had met with the Board of Publications and felt that because we did have a sharper focus on what we were doing the directive could be lifted. The executive committee agreed with us and the directive was lifted." After being allowed to publish, The Banner ran a series of articles on IRM. Suk responded cautiously to the Lake Erie overture. "I think the Christian Reformed Church deserves exactly the sort of denominational magazine it wants and I'm sure one way or another it will get that," said Suk. "If synod would like to talk about that, it's wonderful." "It's the sort of thing that deserves wise and thoughtful deliberation of the sort that synods are known for doing," concluded Suk. Cross-References to Related Articles: #1998-006: Classis Chatham asks Top Christian Reformed Administrative Committee to Appoint Independent Investigators of $11.5 Million in Questionable Investments 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 * E-Mail: borgdorp@crcna.org Dr. David Engelhard, General Secretary, Christian Reformed Church in North America 2850 Kalamazoo Ave. SE, Grand Rapids, MI 49560 O: (616) 246-0744 * H: (616) 243-2418 * FAX: (616) 246-0834 * E-Mail: engelhad@crcna.org Rev. Richard Hamstra, Pastor, Olentangy Christian Reformed Church 6613 Barrett Lane, Columbus, OH 43229 O: (614) 451-0641 * H: (614) 433-9771 * E-Mail: rjhamst@freenet.columbus.oh.us Rev. Alvin Hoksbergen, Retired Pastor, Ferrysburg Christian Reformed Church 18799 Mohican, Spring Lake, MI 49456 O: (616) 842-3880 * H: (616) 846-3047 * FAX: (616) 842-2700 * E-Mail: alhoks@novagate.com Dr. Clayton Libolt, Pastor, River Terrace Christian Reformed Church 2210 Moores River Drive, Lansing, MI 48911 O: (517) 351-9059 * H: (517) 371-4018 * E-Mail: clibolt@sojourn.com Rev. Richard Loerop, Pastor, Imlay City Christian Reformed Church 375 North Cedar Street, Imlay City, MI 48444 O: (810) 724-4315 * H: (810) 724-6019 * E-Mail: rloerop@cardina.net Rev. John Suk, Editor, The Banner 1510 Seminole Dr. SE, Grand Rapids, MI 49506 O: (616) 246-0791 * H: (616) 243-5695 * FAX: (616) 246-0834 * E-Mail: sukj@crcna.org Pastor George Vander Weit, Stated Clerk, Classis Lake Erie 2901 Waterloo Dr., Troy, MI 48084 O: (810) 645-1990 * H: (810) 649-5388 * E-Mail: northhills@juno.com ---------------------------------------------------------- file: /pub/resources/text/reformed/archive98: nr98-028.txt (reformatted 5-6-98) .