The five victims of former school principal Malachy Finegan were due to be paid a total of just over £1m by the Diocese of Dromore by Monday.
After years of legal action and on the eve of trials, the diocese settled with the victims in September and October over abuse committed by Finegan, the one time principal of St Colman’s College in Newry who died in 2002.
In a letter to Archbishop Eamonn Martin, the administrator of the diocese, one of the victims said it was “with great sadness and dismay” the settlement agreed between the legal teams last September had not been sent “to close the legal aspect of this story”.
“That is something, I respectfully suggest, could - and should - have been done in a timely fashion to meet the deadline that was agreed to,” the victim added.
The failure to do so has “added to my distress and pain”, the victim, known as CA in court documents, said. The man has been involved in the legal process for compensation for five years.
Another said he was “devastated” and “disgusted” by the latest delay in completing the legal proceedings, which is linked to a court application by the diocese around its “financial position”.
The diocese, which was contacted for comment, is believed to be seeking court guidance around whether it can use restricted trust funds to cover settlements.
According to its 2024 accounts, the diocese has reserve funds of more than £26m but claims the majority of that money is restricted and can only be used by individual parishes.
The unrestricted fund had a deficit totalling just under £5m at the end of 2024, according to the accounts. This, the diocese adds, is largely due to the payment of compensation and legal fees, which totalled £2.4m last year.
In a separate move, the diocese is attempting to sell off land to cover the costs of compensation linked to the abuse committed by Finegan and others.
The Bishop’s House and 27 acres of surrounding land in Newry was put on the market two years ago. Archbishop Martin confirmed last Friday the house has been sold but the acreage is still on the market.
In a letter to parishioners, Archbishop Martin added: “However, in order to remain fully compliant with its legal duties, the Diocese has requested direction from the High Court in this past week concerning its financial position.”
Solicitor Claire McKeegan, of Phoenix Law, who is representing the five victims, said the survivors were put “through the ultimate stress of full trial preparation”.
“The case settled in September and agreed legally binding terms including time to pay expiring on Monday and yet again the survivors are let down,” Ms McKeegan said.
She added: “We would urge the church to do the right thing once and for all and keep to their commitments.”