A clergyman responsible for a county's social services in the 1970s and 80s "never once" reported staff to police, he said.
In the newly discovered interview, recorded in 2006, the Reverend Nicolas Stacey said children could be "manipulative" and make false claims, in the 2006 tape.
Initially appointed as director of social services for Ealing, in west London in 1971, Mr Stacey subsequently worked in the same role for Kent County Council from 1974 to 1985.
He died in May 2017 aged 89.
The recording, first made public in 2012, was discovered in British Library archives by a former Kendall House resident and abuse survivor, Teresa Cooper.
'Sent to bed'
The interview with Mr Stacey, who had been a parish priest in south London before jobs at Oxfam and Kent County Council, was recorded in 2006.
Last year it was included in a series for the British Library's sound archive called "pioneers of charity and social welfare".
In the wide-ranging discussion with a researcher, he said: "Nobody was to go to the police about accusations against staff without my approval".
He said it was "incredible the way times have changed - I could never begin to do that now".
But he added: "Children, especially children in care, are incredibly manipulative."
Mr Stacey said the sanctions were "terribly few" if children misbehaved, describing how residents of Kent's children's homes were "sent to bed without any supper" if they came in late, suspecting them of having shoplifted or having sex in churchyards.
He said children called Childline to say they were being abused if they were sent to bed early.
"The child would creep down and telephone Childline saying 'I'm being abused'," he said.
Mr Stacey went on to say that he never reported staff to the police, "because I never felt that we had a serious case" - although he did ask some to resign.
"I would try and get them to go to counselling," he said.
"[It's] terribly sad if you're sexually orientated towards children, you know."
He said that if "rampant abuse" had emerged, "of course" he would have gone to the police.
'He failed you'
Ms Cooper, who lived at Kendall House in the early 80s, has called for a further investigation to be carried out into Mr Stacey.
"The ramifications of Stacey's confessional interview are huge," she said.
"This will have an impact on survivors who may have reported abuse to the Kent authorities and police at the time."
Ms Cooper added: "There might potentially be hundreds of allegations and victims facing the serious consequences of injustice based on the unfounded judgement of those meant to protect children."
A spokesperson for the dioceses of Rochester and Canterbury said Mr Stacey's comments raised "serious concerns", given his former position of responsibility for children's homes across Kent.
"We would, of course, be willing to cooperate fully with any investigation into this matter," the spokesperson said.
In a tweet sent to Ms Cooper, the chair of the Kendall House review, Sue Proctor, described the recording as "appalling", adding: "He failed you and countless others".
Dr Proctor could not be reached by BBC News for further comment.
Kent County Council has declined to comment.
Correction 9th March 2017: This article has been amended following a complaint to the BBC's Executive Complaints Unit.