Hello,
As most of you may have gathered, the past couple of years have seen some major downsizing in WTS expenditure, not just overseas but in the US and Canada, including the sale of some buildings. Building projects have been shelved, some half-way completed. Every congregation around the world was instructed to upgrade Kindgom Halls, probably for the purposes of asset protection, as the Trustees of KH’s are only trustees *for* the WTS. Last year for example I noted that even light-bulbs were being switched to those of less demanding power, personnel were sent home, many very disgruntled, from many Branches, WT had began to out-source some of its catering, and there was even talk of some printing being out-sourced. The WTS, most importantly, has also seen one of the most draconian changes to its Corporate structure this century.
That only a few Branches around the world are in profit has never been a secret. The USA, Canada, the UK, Japan, Germany and previously France were profitable as well as one or two Scandinavian Branches. The profits from these Branches subsidized the rest of the World, Africa and South America for example are almost totally subsidised.
As contributions fell, ( some insiders are convinced that the reason for this was the huge amount of cash spent in building Patterson as many JW's wrote to Brooklyn in protest at the vast expenditure ), and with court cases looming the WTS was forced to look at its accounting in a new light. I noticed for example in that the 2001 IBSA contributions ( kindly sent to me by a poster on this Board ) for the UK were $24,132,756 ( converted from English pounds ) while that donated in 2002 was $18,622,570, a fall of approximately 20%. This represents a worrying scenario for the WTS, especially if it is being repeated in the other profitable Branches.
Normally, the WTS relies on the talents, not of those most able but those most 'spiritually qualified' - i.e. those who have kept their nose clean ( at least in one way ) to take care of its needs and its accounting was no exception to that rule. However it seems that the WTS did the unthinkable. It actually bought in outside accountants *not* JW's who looked at the WTS books and running operations and advised a dramatic restructuring of the WTS, its finances and its corporate structure. This seems to be behind the many changes that the WTS has undergone in recent months.
It also seems that the issue with the WTS and the French Government is not going in the favor of the WTS ( relayed to me by a very senior insider ) , who you might remember owe the French tax authorities the Direction Générale, over $68,000,000 + growing interest in back taxes, which the WTS have appealed at court in Europe. This would be a major financial blow the WTS who may fear that a tax-free future elsewhere is limited.
HS