Wed, Apr 06, 2016 page1

• ‘Panama Papers’ spark denials

  OFFSHORE DEALINGS LEAK: Beijing called the reports ‘groundless accusations,’ while the Kremlin said they were the work of the CIA ‘to destabilize the situation’

  • AFP, PARIS
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  World leaders and celebrities exposed in a massive leak of their secret offshore financial dealings are hitting back, saying they have done nothing wrong, despite a growing international furor.

  Some of the biggest names in the scandal said they were being unfairly targeted even as the scandal mushroomed and a series of countries vowed to open tax evasion investigations following the leak of 11.5 million confidential documents — the so-called Panama Papers.

  The vast stash of records from Panamanian legal firm Mossack Fonseca was obtained from an anonymous source by German daily Sueddeutsche Zeitung and shared with more than 100 media groups by the International Consortium of Investigative Journalists (ICIJ), which published their first findings on Sunday after a year-long probe.

  Among those named by the ICIJ and fellow media groups for their offshore dealings are relatives of Chinese President Xi Jinping (習近平), close associates of Russian President Vladimir Putin, Icelandic Prime Minister Sigmundur David Gunnlaugsson and Barcelona soccer player Lionel Messi.

  Offshore financial dealings are not illegal in themselves, but can be used to hide assets from tax authorities, launder the proceeds of criminal activities or conceal misappropriated or politically inconvenient wealth.

  In Beijing, there was no official reaction to ICIJ allegations that eight current or former members of the Chinese Communist Party’s most powerful body concealed their fortunes through offshore havens, as well as relatives of Xi, who has overseen a much-publicized anti-corruption drive.

  However, asked whether China would investigate those named in the reports, Chinese Ministry of Foreign Affairs spokesman Hong Lei (洪磊) said: “For such groundless accusations, I have no comment.”

  The Kremlin suggested a US plot after the leaks put a close friend of Putin’s at the top of an offshore empire worth more than US$2 billion.

  “Putin, Russia, our country, our stability and the upcoming elections are the main target, specifically to destabilize the situation,” a Kremlin spokesman said, claiming many of the journalists were former officers from the US Department of State, the CIA and special services.

  Gunnlaugsson resisted mounting pressure to step down after the leaked documents purportedly showed that he and his wife bought a company in the British Virgin Islands in 2007.

  Huge crowds gathered outside parliament late on Monday demanding he quit and the opposition is set to table a motion of no confidence over the allegations.

  However, the prime minister said he had never hidden money abroad.

  “I have not considered quitting because of this matter nor am I going to quit because of this matter,” he told Icelandic television.

  Australia, France and the Netherlands have announced investigations into revelations contained in the papers.

  A judicial source said Spain had opened a money-laundering probe into the law firm.

  Panama also pledged to identify whether any crimes had been committed and any financial damages should be awarded.

  The latest allegations include:

  ‧ A North Korean front company used to help fund the country’s nuclear weapons program, Pyongyang-based DCB Finance Ltd, was among the clients of the Panamanian law firm, according to the BBC and the Guardian.

  ‧ British Prime Minister David Cameron’s father ran an offshore fund that paid no tax in Britain for 30 years, according to the Panama Papers probe.

  ‧ Aides to French far-right leader Marine Le Pen put in place a “sophisticated offshore system” to hide money, according to Le Monde newspaper.

  ‧ Syria used Mossack Fonseca to create shell companies to help it break international sanctions and fund its war effort, the French paper said.
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