Monday, May. 11, 1987
Taking Command at Fort Mill
By Richard N. Ostling
Looking properly contrite and a trifle weary, fallen Televangelist Jim Bakker emerged from his self-imposed seclusion in Palm Springs, Calif., last week. Flanked by Wife Tammy and Son Jamie, 12, the boyish Bakker, once ruler of the $129 million PTL television and theme-park ministry, delivered a message of conciliation ("We will not fight -- we don't want to be part of a circus") and seeming acceptance ("Without a miracle of God, we will never minister again").
The Pentecostal preacher, who has been lying doggo since he confessed seven weeks ago to adultery, bristled slightly when discussing new charges of immorality recently leveled against him. "I've never been involved in wife swapping," Bakker asserted. "I'm not a homosexual, and I've never been to a prostitute." He noted that he had only enough money to last "six months at the most," and added almost jauntily, "We have eight or nine million dollars in royalties we never received" from PTL.
Those declarations were made only three days after fellow TV Preacher Jerry Falwell made sure that Bakker would never minister again at his former domain in Fort Mill, S.C. Bakker had relinquished control of PTL (for Praise the Lord or People That Love) to Falwell, a Fundamentalist Baptist, after confessing that he had paid $265,000 in hush money to cover up his adultery. But prior to last week's board meeting at PTL, Bakker had wired Falwell that it seemed time for a comeback.
With some of Bakker's followers clamoring for his return, Falwell talked openly of walking away from the troublesome mess. After some soul-searching, the Lynchburg, Va., preacher took decisive command, declaring that Bakker's "ministry here has ceased" and ordering a thorough housecleaning. The PTL board ended further pay to the Bakkers, who reportedly had drawn an astounding $4.6 million in compensation since 1984. A royalty arrangement on the books and records that Tammy and Jim produced at PTL will be negotiated. In addition, the board ousted Bakker's former top aide, Richard Dortch, who had succeeded Bakker as PTL leader and received $620,000 over the past 15 months. Also sacked: Bakker Aide David Taggart, who had been paid $710,000 since January 1986.
The board hired new auditors and ordered a full review of compensation. The Bakkers apparently will no longer have use of the residence provided by PTL, but they own two comfortable homes elsewhere. PTL is expected to unload the lakefront home near Fort Mill where Dortch lives, along with five resort properties and assorted boats and luxury cars.
Falwell and the board launched an investigation into the new sexual charges against Bakker that had been leveled, without public documentation, by Baptist Televangelist John Ankerberg of Chattanooga, Tenn. Falwell disclosed last week that part of Bakker's hush-money payment was made by PTL and that the remainder was provided by a major PTL contractor, Roe Messner of Wichita. At Dortch's request, Messner then billed PTL for the sum, but Falwell described that as a mere "error in judgment."
To grapple with PTL's growing problems, the board installed as its new chief operating officer Harry Hargrave, 38, a Presbyterian who is a Dallas investment consultant and specialist in theme parks. Hargrave told the staff that PTL will now emphasize "glorifying God" and "obeying the laws of the land." He faces a signal task. PTL has lavish building plans, a payroll of 2,000 and debts of $50 million, including $14.7 million owed to Messner.
Perhaps the worst threat facing PTL is the loss of federal tax exemption. The tax code says that "no part" of an exempt group's earnings should benefit an individual. The IRS allows employees reasonable salaries but regularly yanks the exemptions of charities that give excessive pay and perks.
Falwell admits that PTL is fighting for its life. "I would be lying to you if I said that members of this board are not concerned about the future of this ministry," he said. He also declared that "arrogance" and lack of accountability among TV ministries had damaged the Christian cause. "This is a confession from Jerry Falwell," he said. "We are coming to the painful conclusion that if we are public figures leading Christian ministries, using public monies and contributions, then we are publicly responsible."
With reporting by B. Russell Leavitt/Fort Mill and Michael Riley/Los Angeles