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Panama Papers: Politicians, celebs deny abuse of offshore accounts

Reports purport to expose secret arrangements of people around the world


 

 

A security guard sit outside the Mossack Fonseca law firm in Panama City, Sunday, April 3, 2016. German daily Sueddeutsche Zeitung says it has obtained a vast trove of documents detailing the offshore financial dealings of the rich and famous. The International Consortium of Investigative Journalism says the latest trove contains includes nearly 40 years of data from the Panama-based law firm, Mossack Fonseca. The company didnít immediately respond to a request for comment. (AP Photo/Arnulfo Franco)

(Arnulfo Franco, AP)

BERLIN — The president of Ukraine became the latest prominent politician to deny wrongdoing Wednesday after his name was linked to secretive offshore accounts arranged by a Panama law firm.

The revelations have raised suspicion that such offshore entities were set up to avoid taxes, but Petro Poroshenko denied that was the purpose in his case. Rather, he said, it was necessary to create an offshore holding company to put his candy business in a blind trust when he became president of Ukraine in 2014.

“This is absolutely normal procedure, and I think this is the main difference from the naming of all the political figures in this Panama list,” Poroshenko said in Tokyo, where he was meeting with Japan’s Prime Minister Shinzo Abe and business leaders.

“If we have anything to be investigated, I am happy to do that,” he said. “But, this is absolutely transparent from the very beginning. No hidden account, no associated management, no nothing.”

Reports, based on a trove of confidential documents from Panama-based law firm Mossack Fonseca, have purported to expose the offshore arrangements of public officials, businesspeople and celebrities around the world.

FILE - This is a Wednesday June 19, 2013 file photo Iceland's Prime Minister Sigmundur David Gunnlaugsson  speaks during a press conference in Stockholm. The release of a trove of documents on offshore financial dealings of wealthy, famous and powerful people is raising questions over the use of such tactics to avoid taxes and financial oversight. Reports by a media coalition on an investigation with the International Consortium of Investigative Journalists brought to light details of offshore assets and services of politicians, businesses and celebrities, based on 11.5 million records.  Sigmundur David Gunnlaugsson has been named in the documents about offshore financial dealings,  (Bertil Enevag Ericson, TT, File via AP ) SWEDEN OUT

 (Bertil Enevag Ericson, TT, File via AP ) 

Iceland’s prime minister became the first casualty of the affair Tuesday, stepping down two days after a video was aired showing him breaking off a television interview over questions about his family’s offshore dealings.

Sigmundur David Gunnlaugsson had faced opposition calls to resign over revelations he had used a shell company to shelter large sums while Iceland’s economy was in crisis. He denied wrongdoing and has recommended that his deputy Sigurdur Ingi Johannsson take over as prime minister for an unspecified period of time.

Protesters planned to gather outside parliament Wednesday afternoon in the third consecutive day of demonstrations calling for a new government.

The so-called Panama Papers reports, which were co-ordinated by the Washington-based International Consortium of Investigative Journalists, have prompted both fierce criticism of those named and strong denials of wrongdoing. While there are legitimate reasons for setting up offshore companies, corruption experts say such constructs are frequently used to hide assets —be it from tax authorities or ex-spouses.

In Poroshenko’s case, Ukrainian opposition groups argue that the president’s decision to set up an offshore holding company in the British Virgin Islands could have deprived his country of millions of dollars in taxes.

A British Virgin Islands company has also been linked to Formula One driver Nico Rosberg, though his lawyer said the offshore firm was created solely for liability reasons and to enable him to operate internationally.

German public broadcaster NDR reported that Mossack Fonseca manages a company called Ambitious Group Ltd which has a contract with Mercedes for Rosberg’s “driver services.”

Rosberg’s German lawyer, Christian Schertz, said Ambitious Group, which is registered in the British Virgin Islands, wasn’t used for tax avoidance.

“Tax-wise, Mr. Rosberg acted correctly in every way,” Schertz said in a statement late Tuesday. Rosberg, who won Sunday’s Bahrain Grand Prix, is registered in Monaco for tax purposes and receives all payments there, he said.

A prominent Bollywood actor, Amitabh Bachchan, denied reports by The Indian Express newspaper that he was connected to four shipping companies registered in tax havens. “It is possible that my name has been misused,” Bachhan tweeted late Tuesday.

“I have paid all my taxes including on monies spent by me overseas,” he said. “Monies that I have remitted overseas have been in compliance with law, including remittances through LRS (Liberalized Remittance Scheme) after paying Indian taxes. In any event the news report in the Indian Express doesn’t even suggest any illegality on my part.”

France’s far-right National Front party said Wednesday it was filing law suits for defamation against media who imply that it or leader Marine Le Pen — who plans to run in the 2017 presidential race — may be implicated in the Panama papers scandal.

Paris daily Le Monde reported Tuesday on the offshore dealings of a longtime Le Pen acquaintance whose company provides publicity for electoral campaigns. The paper also examined potential but unproven offshore interests of Le Pen’s father, Jean-Marie Le Pen, via a former employee.

Le Pen’s anti-immigration National Front portrays globalization as one of the enemies to redressing the French economy and preserving the nation’s identity, making any innuendo that people linked to the party may allegedly be using foreign shell companies to hide funds a sensitive issue.

David Keyton in Reykjavik, Iceland, and Elaine Ganley in Paris contributed to this report.

 


 
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Panama Papers: Politicians, celebs deny abuse of offshore accounts

  1. Evermore so slightly a whiff of the smell of misdirection from this anonymous leak — the blaring absence of any mention of multinational corporations.

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