On January 17, 2002, Elder Anthony Paschal was placed on administrative leave in connection with his responsibilities as Vice-President for African-American Ministries within the Southeastern California Conference of Seventh-day Adventists.

The decision to place Elder Paschal on administrative leave was made by the officers of the Southeastern California Conference of Seventh-day Adventists based upon Elder Paschal's involvement in attempting to purchase an expensive parcel of real estate in Orange County, California. Subsequently, on January 24, 2002 the Southeastern California Conference of Seventh-day Adventists Executive Committee voted to continue the administrative leave of Elder Paschal in connection with his responsibilities as Vice- President of African American Ministries until the facts and circumstances surrounding the attempted property acquisition could be fully investigated.

At the Conference Executive Committee Meeting on January 24, 2002, the Executive Committee appointed a select Sub-Committee to fully investigate the issues surrounding the attempted property acquisition. The Sub-Committee was thoughtfully chosen to be representative of the broad diversity within the Southeastern California Conference of Seventh-day Adventists.

Following the appointment of the select Sub-Committee, the Sub-Committee commenced a process to carefully review the facts and circumstances surrounding the transaction and to personally interview Elder Paschal and other knowledgeable individuals. Based upon this process, the select Sub-Committee made a number of findings which can be summarized as follows:

1. Elder Paschal was attempting to locate real estate that would facilitate and further the ministry of the African-American work of the Southeastern California Conference of Seventh-day Adventists.

2. Although Elder Paschal had generally consulted with a number of church leaders within the African-American community, at no time prior to signing the relevant purchase agreement and the opening of escrow for the subject property did Elder Paschal consult with either the conference officers or the Conference Executive Committee as required by Conference policy and procedure.

3. In addition, as part of the escrow transaction, Elder Paschal obtained personal loans from several individuals. Regrettably, one of those individuals has chosen to file suit against the Southeastern California Conference of Seventh-day Adventists, Elder Paschal and a third party.

4. The Sub-Committee determined that Elder Paschal was not authorized to sign purchase and sale documents or to open an escrow on behalf of the Southeastern California Conference of Seventh-day Adventists.

5. In light of the fact that: a) the Conference's name was placed on purchase and sale documents and an escrow was opened without its authorization; b) Elder Paschal knew or should have known that he was not an authorized signatory on behalf of the Southeastern California Conference of Seventh-day Adventists; c) the process of identifying and negotiating this purchase occurred over many months and Elder Paschal at no time discussed this transaction with Conference officers until called in by them; d) the magnitude of this purchase ($14,600,000) would make it the single largest property purchase in the history of the Southeastern California Conference; e) the financial plan for purchasing this property was totally inadequate and exposed the Conference, the African American work and Elder Paschal personally to significant liability, the select Sub-Committee recommended that Elder Paschal be removed from his responsibilities as Vice-President of African American Ministries in the Southeastern California Conference of Seventh-day Adventists.

6. In recognition, however, of Elder Paschal's significant contributions to pastoral ministry within the Southeastern California Conference of Seventh-day Adventists and in further recognition of his significant contribution as the Vice-President for African American Ministries, the Sub-Committee recommended that Elder Paschal be asked to serve as the Senior Pastor of the 16th Street Seventh-day Adventist Church in San Bernardino, California.

On March 19, 2002, the Conference Executive Committee met and received the report and recommendation from the select Sub-Committee. In addition, the Executive Committee received input from the African American caucus and from select members of the African American Ministerial Association within the Southeastern California Conference of Seventh-day Adventists. Based upon the report and recommendation of the select Sub-Committee, as well as input from the African American caucus and select members of the African American Ministerial Association, the Conference Executive Committee: "Voted that Elder Paschal be named as the Senior Pastor of the 16th Street Seventh-day Adventist Church in San Bernardino, California and that he not continue in the position of Vice-President of African American Ministries."

The Conference Executive Committee has thoughtfully and thoroughly reviewed this matter and believes this decision upholds the principles of responsible leadership within the Southeastern California Conference of Seventh-day Adventists while respecting the viewpoint on this issue of members within the African American community. The decision to name Elder Anthony Paschal as the Senior Pastor of the 16th Street Seventh-day Adventist Church in San Bernardino, California affirms his ministry within the Southeastern California Conference.

Southeastern California Conference, March 20, 2002

Released by the President's Office and the Communication Department