Panama Papers: Revelations trigger investigations and denials by accused world-wide

Reykjavik: Iceland’s prime minister resigned on Tuesday becoming the first political victim of a mushrooming worldwide scandal over hidden offshore financial dealings exposed in the so-called Panama Papers.

Prime Minister Sigmundur David Gunnlaugsson was the biggest casualty of a worldwide media probe into 11.5 million leaked documents that purportedly reveal the offshore financial activities of 140 political figures, including 12 current or former heads of state.

“The prime minister told (his party’s) parliamentary group meeting that he would step down and I will take over,” Progressive Party's deputy leader Sigurdur Ingi Johannsson said.

Meanwhile, it was learnt that the Panamanian law firm at the heart of a massive leak of offshore banking records has more offices in China than any other country, raising questions about its activities in the Communist-ruled country.

The scandal erupted when media groups began revealing the results of a year-long probe into a trove of 11.5 million documents from Panamanian law firm Mossack Fonseca, which specialises in creating offshore shell companies.

At least eight current or former members of China’s Politburo Standing Comm-ittee, the ruling party’s most powerful body, have been implicated.
Mossack Fonseca operates branches in eight Chinese cities. The Guardian said an internal Mossack Fonseca survey found the biggest proportion of its offshore company owners came from mainland China.

Mossack Fonseca’s offices in China include the major financial centres of Shanghai and Shenzhen, as well as port cities Qingdao and Dalian, but also lesser-known provincial capitals such as Shandong’s Jinan, known for its links to coal industry, and Hangzhou in Zhejiang, along with Ningbo, also in the eastern province.

Fallen political star Bo Xilai was once the mayor of Dalian, and at least 48 officials from Shandong have been caught up in Beijing’s anti-graft campaign.
World leaders and celebrities exposed in the leak are hitting back, saying they have done nothing wrong.

Also, a known soccer player, a fashion designer whose dresses are worn by first lady Michelle Obama are on a list of prominent Serbs who roped in Mossack Fonseca.

The Belgrade-based KRIK network investigating crime says Darko Kovacevic had officially earned about $2,000 a month while playing for Spanish club Real Sociedad during the 2006-2007 season.

The leaked documents, however, show the club had paid Kovacevic $1.4 million that season to his offshore account.  
Fashion designer Roksanda Ilincic had a firm in British Virgin Islands, KRIK said.

Global outrage

China: China dismissed as “groundless” reports that relatives of current and retired politicians, including President Xi Jinping, own offshore companies. The state media are ignoring the reports, and search results for the words “Panama documents” have been blocked on websites and social media.

Iceland: Iceland’s prime minister has vowed to not resign despite thousands of angry protesters demanded he step down and call new elections after the leaks showed possible links to an offshore company that could represent a serious conflict of interest.

Ukraine: Ukraine’s president was accused of abusing his office and of tax evasion by moving his candy business offshore, possibly depriving the country of millions of dollars in taxes.

Algeria:  In Algeria, a company that manages the finances of Abdessalam Bouchouareb, industry minister says he is linked to an offshore firm created in Panama, but says its activities are frozen while he’s serving in the government.

United Kingdom:  David Cameron’s Downing Street office insisted it was a “private matter” whether the family still had funds in offshore investments, although a government source later said that the prime minister himself did not have any such funds. The revelations are embarrassing for Cameron given his strong public stance on the issue, particularly coming just a month before London hosts a major anti-corruption summit on May 12.

France:  Aides to French far-right leader Marine Le Pen put in place a “sophisticated offshore system” to hide money, Le Monde reported on Tuesday in the latest disclosure from the Panama Papers.

Russia: Kremlin spokesman Dmitry Peskov claimed Vladmir Putin was the “main target” of the investigation, which he suggested was the result of “Putinophobia” and aimed at smearing Russia in a parliamentary election year.

Argentina: The family of footballing great Messi said the revelations showed no wrongdoing after the footballer and his father were named as owners of a Panama company that had not previously been disclosed during a Spanish probe into their tax affairs. “The Panama company to which they refer to is a totally inactive company that never had any funds or any open current accounts,” the Messi family.