The Vatican City Court of Appeal dismissed the appeal of Libero Milone, the Vatican’s first auditor general, in his wrongful dismissal lawsuit
Newsroom (30/07/2025, Gaudium Press ) The Vatican City Court of Appeal has dismissed the appeal of Libero Milone, the Vatican’s first auditor general, in his wrongful dismissal lawsuit against the Secretariat of State, dealing a significant blow to his claims of being ousted for uncovering financial misconduct.
The court’s July 22 ruling, upheld a January 2024 decision that rejected Milone’s compensation claim as “groundless.” The judges stated, “It is not so much the lack of passive standing of the Secretariat of State that must be affirmed, but rather the groundlessness of the claim brought against it.” The decision reaffirmed that the Secretariat was not liable for Milone’s 2017 dismissal, ordering him to pay approximately 100,000 euros in legal costs.
Milone, a former chairman and CEO of Deloitte’s Italian branch, and his late deputy, Ferruccio Panicco, filed the 9.3 million euro lawsuit in November 2022, alleging unfair dismissal, loss of income, and reputational damage. The pair claimed they were forced to resign after uncovering evidence of corruption and financial irregularities at senior levels within the Vatican. Milone has vowed to continue his legal battle to restore his and Panicco’s professional reputations.
Central to their accusations is Cardinal Angelo Becciu, the former No. 2 official at the Secretariat of State. Milone and Panicco alleged that Becciu collaborated with Vatican police to orchestrate a 2017 raid on their offices, framing them for spying and embezzlement to halt their investigations. The auditors denied these charges, asserting they were adhering to international auditing standards as mandated by the 2014 statute establishing the Office of the Auditor General.
The court, however, ruled that the Secretariat of State was not responsible for the actions leading to their resignations, attributing them instead to the Vatican Gendarmerie, under the Governorate’s authority. The judges noted that neither Becciu nor Domenico Giani, the former Gendarmerie commander who conducted the raid, were sued directly, and no prosecution against Becciu had been pursued by Vatican City.
Milone’s legal team argued that Becciu’s actions, as deputy secretary of state, inherently implicated the Secretariat, asserting that he could not have acted independently. They cited a 1933 law requiring legal claims to be filed against the Secretary of State or the Governor. However, the Secretariat’s lawyers countered that Milone’s appointment by Pope Francis meant his claim effectively targeted the pontiff, which is prohibited under canon law. Milone disputes this, insisting his hiring was through the Secretariat and supported by documentation.
In preparation for the appeal, Milone’s lawyers compiled a detailed dossier outlining alleged financial malfeasance, including fund concealment, conflicts of interest, and obstructionism. However, the Vatican tribunal ordered the removal of 25 pages of this documentation, deeming them irrelevant and potentially damaging to individuals not involved in the lawsuit. This directive prompted the resignation of Milone’s lead counsel, Romano Vaccarella, a prominent constitutional lawyer, who criticized the court’s impartiality.
Adding to their grievances, Panicco, who died of cancer in 2023, claimed his health deteriorated after his medical records vanished during the 2017 raid and were never returned. Milone described the Vatican’s financial affairs as “a real nest of vipers,” suggesting that their investigations threatened powerful figures.
Milone now faces a decision on whether to escalate his case to the Vatican City State’s court of cassation, the territory’s highest court. In a statement to the Register on July 24, he remained resolute: “I will not give up until justice is done and my good name and that of my colleague is restored.”
- Raju Hasmukh with files from National Catholic Register.
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