As previously stated by posters on this thread; it is a huge problem based on how it is handled. Here is some faulty reasonning on the matter:
"We are not concerned with whether a person is guilty or innocent, but rather whether or not they repent." - My former Congregation Coordinator
Couple that with - 1) If the person is repentant they are forgiven by Jehovah. Therefore, you have to forgive them and 2) Keeping Jehovah's earthly organization's name above reproach and out of the newspapers is more important than protecting the well being of children.
This all boils down to:
A) If the child abuser says they're sorry they are forgiven.
B) If they are forgiven by Jehovah you have to forgive them as well. Failure to do so could result in you being disfellowshipped.
C) It's more important to maintain the organization's reputation than to protect children.
D) Even if mandatory reporting laws exist, ignore them. You can pick and choose what laws to follow if you think a law violates a Bible principal. After all, you have to obey God rather than men.
I've dealt with uncooperative elders who protected child molesters. I think that was the beginning of the end for me. The detective I worked with said that the elders she needed to testify were subpoena dodging and the trial date was coming up. I took the subpoenas and served everyone of them, personally. I only wished I could have done it at the Kingdom Hall during a meeting.