On 4/4/2016 International Consortium of Investigative Journalists, The Indian Express and Suddeutsche Zeitung made public many documents, around 11.5 million, related to firms registered in Panama.
Mossack Fonseca is a law firm in Panama. Documents of Mossack Fonseca that have become public have resulted in problems for those who figure in them. Ramon Fonseca, founding partner, said his company was hacked by servers abroad. He said nobody is talking of the hack and that is the only crime committed.
Amitabh Bachchan was linked to four companies as director. Sea Bulk Shipping Company Ltd in British Virgin Islands, Lady Shipping Ltd, Treasure Shipping Ltd and Tramp Shipping Ltd in Bahamas. One document showed Amitabh Bachchan resigned from Tramp Shipping Ltd in September 1997.
Amitabh Bachchan said he was not Director in the four companies. His statement said “I do not know any of the companies referred to by Indian Express – Sea Bulk Shipping Company Ltd, Lady Shipping Ltd, Treasure Shipping Ltd and Tramp Shipping Ltd. I have never been a director of any of the above stated companies. It is possible that my name has been misused.
I have paid all my taxes including on monies spent by me overseas. Monies I have remitted overseas have been in compliance with law, including remittances through LRS, after paying Indian taxes. In any event, the news report in Indian Express does not even suggest any illegality on my part.”
Aishwarya Rai, her father Krishna Rai, mother Vrinda Rai and brother Aditya Rai were shown as directors in Amic Partners Limited in British Virgin Islands. The company was registered on 28/10/2004 and wound up on 30/4/2009. Aishwarya Rai was director from 14/5/2005 to 18/6/2005. After that she continued as shareholder. Aishwarya Rai’s media advisor Archana Sadanand said all information is totally untrue and false.
Harish Salve did not appear on any TV channel. There was no mention of any journalist trying to get in touch with him for his comment.
Vinod Adani was mentioned as elder brother of Gautam Adani, who is close to Narendra Modi. Adani Group issued a statement. “Mr. Vinod Adani who is the elder brother of Mr. Gautam Adani has been a Non-Resident Indian (NRI) for about 30 years and has his own established business interests outside India.
It is strange that Mr. Gautam Adani’s name in mentioned in the headline though he is not the account holder and the story actually pertains to Indians having not legitimate bank accounts abroad. This is a deliberate attempt to draw Mr. Gautam Adani’s name, not just to mislead the readers at large but mischievously sensationalising the matter.”
Ian Cameron, father of David Cameron, had some shares in a company. David Cameron said he sold the shares he inherited and paid tax on them in January 2010, five months before he became Prime Minister.
Iceland’s Prime Minister Sigmundur David Gunlaugsson had to resign on 5/4/2016 after revelation that his wife owned a firm with claims on Iceland’s collapsed banks. Iceland’s Foreign Minister was in India on a visit from 3 – 9 April. On 5th he had met India’s Foreign Minister Sushma Swaraj.
Ukraine’s President Petro Poroshenko is in the list. He justified his ownership. He said “Having become president, I stopped participating in the management of my assets, having delegated this responsibility to the respective consulting and law firms.”
Russia said it was a conspiracy against them. Some documents had names of Vladimir Putin’s friends and close associates.
China blocked news of Panama Papers. The names included President Xi Jinping’s brother-in-law.
There is no name from USA. Some say it is a CIA plot. May be Americans registered with some other law firm.
In Argentina there was demonstration against Mauricio Macri. He said his father started the company and it shut some years back. It is four months since he became President.
In Panama it is legal to buy companies or set up offshore companies. Those who bought companies there or became Directors in the companies did not break any law in Panama. Some Indians have claimed they are NRIs and what they have done is legal. Some claimed they have permission of RBI. Many companies were bought in British Virgin Islands.
Laws differ from country to country and sometimes within a country. Someone on BBC said secrecy of accounts and firms is allowed in Delaware and New Jersey in USA. That can be one reason why Americans do not figure in Panama Papers.
We have to see whether those who own foreign accounts or companies have defaulted on loans or have gone for corporate or strategic debt restructuring. If yes, the swindlers should be in jail.