But instead of laying criminal charges against the culprits identified by a team of forensic auditors, church elders have extended an olive branch, asking them to repay the money.

Parishioners at the George diocese are all a-twitter as details emerge about the extent of financial mismanagement and embezzlement of cash from the church.

The missing money was held by the George diocese on behalf of its 31 parishes - much of it donated by parishioners.

The diocese is one of the largest Anglican congregations in the country, with about 40 000 parishioners, reaching from Swellendam to Plettenberg Bay, Ladysmith to Graaff-Reinet and Beaufort West.

The drama reached a head last month when the Anglican archbishop of Cape Town, the Most Reverend Dr Thabo Makgoba, visited the diocese.

On that day, the bishop of the diocese, the Right Reverend Donald Harker, agreed to go on early retirement with effect from next week.

Bishop Harker declined to discuss the saga in detail, but agreed to answer some questions "for the sake of clarity".

"This is not a case for the newspapers.

"The church is dealing with it internally, in a spiritual manner," he told the Sunday Times at his official residence, Bishopslea.

"What I can say is that the two key officials who were entrusted with the church finances have since left the church. I also know that some money has been paid back to the church."

Harker said it was his decision to take early retirement. "I have 40 years' service. And when this was revealed, I took the responsibility because I was the head of the diocese."

Police spokesman, Captain Malcom Pojie, confirmed that no criminal charges had been filed with the police in George.

The church has set up a committee to assess the criminal or civil liabilities of the individuals involved.

According to a statement issued by the church on Friday, they are confident that most of the money will be recovered.

Rob Rogerson, provincial treasurer of the church, said that: "Those named in the audit are now being given the opportunity to answer.

"If anyone was enriched, they can pay back the money, or the church can attempt to get the money back through civil action."

It is not clear how much money in total was involved, but an audit report will be handed to the Reverend Makgoba within days.

Bishop Harker said "millions are involved, but not as much as R6-million".

Upset parishioners this week said it was "sad that the bishop has to leave under such circumstances".

By SAPA