Panama to work ‘vigorously’ to investigate leaked files

The government of Panama has pledged to “vigorously cooperate” with any investigation about a massive leak of confidential documents which allegedly implicates government heads and the rich in setting up tax havens to hide their wealth.

On Sunday, Süddeutsche Zeitung, a German newspaper working with the International Consortium of Investigative Journalists (ICIJ), said it has received a cache of 11.5 million leaked documents from the internal database of the Panamanian law firm Mossack Fonseca and shared them with more than 100 other international news outlets as well as the ICIJ. 

The massive leak dubbed the “Panama Papers” showed how the high-profile firm specializing in establishing shell companies, has helped clients launder money, dodge sanctions and evade taxes.

“The Panamanian government will vigorously cooperate with any request or assistance necessary in the event of any legal action occurring,” the government said in a statement on Monday.

The high-profile Panamanian company has denied any wrongdoing, saying the firm has fallen victim to “an international campaign against privacy.”

Ramon Fonseca, the director of Mossack Fonseca, told Reuters on Sunday that his firm had suffered a successful but “limited” hack.

Fonseca said his company has formed more than 240,000 companies, adding that the “vast majority” have been used for “legitimate purposes.”

The leaked files exposed the secret offshore dealings of aides to Russian President Vladimir Putin, world leaders, and celebrities including Barcelona forward Lionel Messi.

They revealed a suspected billion-dollar money laundering ring involving close associates of President Putin.

Media 'sacrificed to political demands'

Last month, Kremlin spokesman Dmitry Peskov said that Western mass media intended to launch a new slander attack on President Putin, expressing regret that reporters’ professionalism is often “sacrificed to political demands.”

Peskov said that the fresh set of false reports made with intent to harm the president’s reputation would be released in the nearest future.

The Russian official said that the presidential administration received letters with requests to comment on more unfounded allegations.

“Another piece of spin, which is claimed to be sensational and objective, will happen in the nearest days. We have received some excessively-rich requests that, however, in their form were more like questions at an interrogation,” Peskov said.

He further explained that the letters contained some personal questions about Putin, as well as questions about Russian president’s family, his childhood friends and some businessmen.

Reactions pour in to Panama Papers 

French President Francois Hollande said on Monday that the “Panama Papers” revelations would help “increase tax revenues from those who commit fraud.”

“I can assure you that as the information emerges, investigations will be carried out, cases will be opened and trials will be held,” Hollande said on the sidelines of a visit to a company in Paris suburbs.

The British government has asked for a copy of the leaked data on the clients of the Panamanian firm so that it could examine the information and act on any possible tax evasion, according to Reuters.

The family of Pakistani Prime Minister Nawaz Sharif also on Monday defended their ownership of offshore companies after they were named in the “Panama Papers.”

“Nawaz Sharif does not own any company but having companies in the name of his children also raises questions,” Umar Cheema of the Center for Investigative Reporting in Pakistan said.

The Australian Tax Office (ATO) has said it is investigating more than 800 wealthy clients of a law firm for possible tax evasion.

“Currently we have identified over 800 individual taxpayers and we have now linked over 120 of them to an associate offshore service provider located in Hong Kong,” the Australian tax office said in a statement emailed to Reuters, without naming the firm.

In New Zealand, tax authorities are probing local clients of Mossack Fonseca who may have been involved in arrangements facilitated by the Panamanian firm.

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