Panama Leaks Send a Jolt to World Politicians and Business Tycoons

Panama Leaks Send a Jolt to World Politicians and Business Tycoons

Mossack Fonseca, a law firm in Panama, has had its decades of records leaked and these leaked documents are being called the Panama Papers or Panama Leaks. The documents contain information on how the rich people of the world including lawmakers, politicians and businessmen use offshore companies and other methods to escape the taxes and increase their wealth by manifolds. Some of the biggest names, who also happen to be the heads of their states, have been mentioned in these documents. The most prominent names include the Prime Minister of Pakistan Nawaz Sharif, President Xi of China, the Prime Minister of Iceland Sigmundur David Gunnlaugson, Russian president Vladimir Putin, etc.

There are nearly eleven million documents that were analyzed before they were brought to the global public. As per the documents Mossack Fonseca has been assisting individuals from various parts of the world in laundering money, escaping taxes, trafficking drugs, etc. The leaks have gained attention because some of world’s heads of the states have been named in them. The total data, which comprises of nearly 2500GB, contains information of nearly 40 years. Most of the people named in the documents are either running from facing the media or giving runarounds.

Iceland’s Prime Minister Sigmundur was accused of having undeclared interest in the wealth that belonged to his wife. However, after walking out of one interview on this question he has now said that he will not resign for what’s mentioned in the leaks about him since he think he has not committed any fraud or illegal action. The Russian President has been involved in a deal that involved literally billions of dollars. He did this using the banks and some companies whose identities were not clear. Azerbaijani president Ilham is also facing the heat due to his family’s names in the leaks.

Pakistani Prime Minister Nawaz Sharif and his brother Shahbaz Sharif, who’s the chief Minister of the province of Punjab, have also not been named directly but their families and relatives have been mentioned in the leaks. Nawaz Sharif’s daughter and two sons own multiple companies in different countries that have been doing real estate business in Europe through proxy companies. Both the relatives of the chief minister and the children of Prime Minister Nawaz Sharif have been defending their activities calling them fully legal and as per their respective constitutions.

The most shocking situation is in Saudi Arabia where the public has not yet shown any protest against the offshore companies and withholdings of their king. The royal family is involved in many different businesses running offshore for the main purpose of avoiding taxes according to the Panama Papers. Former and current rulers of Libya and Egypt have also been named in the documents. In Syria, the newspapers that are regulated by the state have not talked about the news at all acting as if nothing wrong has happened. However, there is a lot of noise on social media about the condition of Middle East and its inclusion in the documents.

The US has not been an exception in the case too since it has been found out that more than 1000 firms and companies in the US have links with the Mossack Fonseca. According to the documents, most of the firms are in Nevada and Wyoming. The corporate laws in both the states are quite suitable for people who want to run businesses without showing much of what they are doing. The economy experts say that if anyone wishes to start a business without letting the world know what that business is going to do, Nevada and Wyoming are the best places.

The Papers have started to cause their effect in many countries of the world. NAB (National Accountability Bureau) of Pakistan has started to investigate the matters and get to the people mentioned in the documents. Prime Minister of Iceland has also resigned from his position in the wake the leaks. France has now pushed Panama’s name into the list of countries that are a failure in cooperating in tax returns and thus cause tax evasions. Panama has said that it will react to France’s move but at the same time it has said that it will assist in any investigations that might take place on the matter.

Some people believe that a lot will change in the world due to the leaks but there are those who believe that nothing wrong will happen to the wrong people because they are too strong for anyone to get their hands on them. Furthermore, the fact that offshore companies are not illegal has become the main defending point for most of the people mentioned in the Panama Papers. The biggest question remain, “why did they have such companies and where did the money come from?”

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