This sounds pretty bad, and it's discouraging because I thought Bishop Daly was one of the good guys.
I wouldn't blame a bishop for handling such a scandal quietly, but I would blame him for not removing the priest from all duties and putting him somewhere where he couldn't do any more damage.
A bishop has not duty to publicize every scandal, but he does have a duty to protect his flock and put an end to any further wrongdoing.
There doesn't seem to be much doubt that Daley failed to do the right thing in this case, although I reserve some doubts since the Daily News is not a trustworthy source. But the story appears to be confirmed.
Oh. This story is dated 2002? That should have been made much clearer.