Yesterday The biggest
financial data leak in history has revealed how Vladimir Putin's inner
circle and a 'dirty dozen' list of world leaders and celebrities like Jackie Chan and Lionel Messi are using secret offshore tax
havens to hide their wealth. The Senate President, Bukola Saraki’s
family and a former governor of Delta State, James Ibori, were also named among
some prominent Africans named in the newly discovered secret offshore
assets scam released by a German newspaper Süddeutsche Zeitung.
The German newspaper on Monday released
the Panama Papers, the biggest leak in the history of data journalism,
publishing online 11.5 million documents from Panamanian law firm
Mossack Fonseca, which showed how world leaders, celebrities, athletes,
FIFA officials and criminals hid money using anonymous shell
corporations across the world.
The Panamanian law firm, regarded as one
of the world’s most secretive companies, according to the documents,
has helped clients launder money, dodge sanctions and evade tax.
The data was obtained by the German
newspaper Süddeutsche Zeitung <http://www.sueddeutsche.de/> and
shared by the International Consortium of Investigative Journalists with
over 100 other media partners in 82 countries.
Newsweek quoting the report disclosed
that Ibori was linked to four offshore companies including Stanhope
Investments, which he allegedly used to open a Swiss bank account. The
account, it added, was used by Ibori to channel funds for the purchase
of a $20m private jet.
Ibori was governor between 1999 and
2007. He was convicted in 2012 for fraud totalling nearly £50m by a
London court and is currently serving a 13-year prison sentence in the
UK
It was also alleged that about four assets belonging to the Saraki family were tucked away in secret offshore territories.
The assets were allegedly not part of
the ones declared by the Senate President nor his wife, Toyin when
Saraki became the governor of Kwara State and after he was sworn in as
the nation’s number three citizen.
Quoting the report, Premium Times said
the undeclared assets by Saraki include Girol Properties Ltd., Sandon
Development Limited, and Landfield International Developments Ltd.
Girol Properties, the report stated, was
registered on behalf of Toyin by Fonsecca on August 25, 2004, in the
British Virgin Island, a year after her husband, Bukola, became the
governor of Kwara State.
It added that the company documents
showed that Mrs. Saraki “owns 25,000 numbers of shares with a par value
of US$ 1,000 each, and was appointed the first and only director of the
company.
Mrs. Saraki, according to the online
medium, however, in a letter to ICIJ, through her lawyers, denied ever
owning any shareholding in Girol Properties.
According to ICIJ, the second undeclared
asset, Sandon Development Limited, was registered in Seychelles Island
on January 12, 2011 and had Mrs. Saraki and one Babatunde Morakinyo, of
11 Okeme Street, Lagos, as shareholders.
While incorporating that company,
documents show, Mrs. Saraki bought a curious service from Mossack
Fonseca & Co, the Panamanian firm that helped her to register the
firm.
The online medium noted that this was
done by Saraki’s wife in order to avoid being identified as the
beneficial owner of Sandon, the Senate President’s wife asked Mossack
Fonsecca to provide nominee directors for the company.
Nominee directors, according to the report are sometimes used in tax havens to conceal real owners of companies and assets.
It added that after the company was
incorporated, Mrs. Saraki used it in July 2011, to allegedly buy the
property on Whuttaker Street, Belgravia, London SW1W 8JQ.
Landfield International Developments
Ltd., a company registered in the British Virgin Islands on April 8,
2014. It’s registration number is 1819394 while its registered office is
1 Akara Blog., 24 De Castro Street, Wickhams Cay 1, Road Town, Tortola,
British Virgin Island.
According to Mossack Fonseca, the
registered agent of the company, Mrs. Saraki, at least until January 27,
2015, was sole shareholder and beneficial owner of the company which
had two nominee directors – Glaisd Alie Limited and NewGombe Limited –
both appointed on September 2, 2014. Its agent says Landfield is
authorized to issue a maximum of 50,000 no par value shares.
However, Mrs Saraki had denied ownership of these companies in a letter her lawyer wrote to the ICIJ.
But Saraki, while reacting to the
report, said the assets allegedly linked to him actually belonged to
the family of his wife which he was not obliged to declare under the
law.
He, however, said he had fully complied with the provisions of the law on the declaration of assets by public officers.
He stated this in a statement issued by his Special Adviser on Media and Publicity, Yusuph Olaniyonu.
Saraki said he had, in his different asset declarations, included properties owned individually by himself and his wife.
He explained that the property in question formed part of his wife’s family asset.
The statement partly read, “ It is
public knowledge that Mrs. Saraki comes from a family of independent
means and wealth with numerous and varied assets acquired over decades
in family estates and investments.
“Furthermore, the law only requires a
public officer to declare both his own assets and those held by his
spouse and his children under 18 years of age. The law does not require a
public officer to declare assets held by the spouse’s family.
“It is not expected by the law that a
public officer should declare such assets held in the spouse’s family
estate. Indeed, the Code of Conduct form does not make provision for
declaration of spouse’s family assets.”
Other Africans named in the hidden
assets scam included the nephew of embattled South African President
Jacob Zuma, Khulubuse Zuma, Kalpana Rawal, the Deputy Chief Justice and
Deputy President of Kenya’s Supreme Court.
Some Nigerians and civil right groups
who reacted to the fresh scam called for the prosecution of anybody
involved in such an illegal transfer of funds.
The Executive Director of CISLAC, Auwal Musa- Rafsanjani, in a telephone interview with The PUNCH,
in Abuja, said civil society had for the past 18 years clomoured for a
thorough investigation of individuals and corporate organizations such
as banks and construction companies that had been used as conduits to
fritter away our common patrimony.
The Executive Chairman of the Coalition
Against Corrupt Leaders, Mr. Debo Adeniran, said the group could no
longer be shocked by any such a revelation, given that the Saraki’s
family had been in public office for long and had had for long had
access to the country’s resources.
Also, a former Lagos State Police
Commissioner, Alhaji Abubakar Tsav, said it was time Nigeria tightened
its anti-corruption/ money laundering laws.
He noted that our laws as they were appear to threat economic crimes with levity.
According to him, it is sad that most of
our government officials both elected and appointed think more of
enriching themselves as soon as they enter office instead of working for
the common good.
Tsav said, “The best thing our
government can do now is to strengthen our laws to prevent people who
stole our common wealth from taking such monies abroad either by
themselves or through proxies using offshore accounts.
A security expert, Max Gbanite has said
that the United Kingdom law could take its course against Saraki, if it
was proven that he had hidden properties and bank accounts in London.
Gbanite said, “If he (Saraki) was found
to have hidden properties in UK, the UK law should take its course, if
the Federal Government gets a good lawyer. The corruption cases cannot
go far if there is no special court and they must not take longer than
six months. The EFCC forensic department is capable of finding out if
the properties belong to Saraki and this could be proved in court.”
The Executive Director of the Civil
Liberties Organisation, Mr. Ibuchukwu Ezike, said the disclosure by the
International Consortium of Investigative Journalists remained a rumour
until properly investigated by authorised agencies.
Ezike said, “Whatever allegations that
are being made, the matter is already in court; so, until the court
decides on the matter, we cannot have a contrary opinion. We await the
outcome of the case.
“The International Consortium of
Investigative Journalists is not a prosecuting agency, whatever they say
is still like a rumour; they don’t have the power to file charges or
prosecute and we know that the matter is in court, we cannot intervene
or meddle in a matter that is already in court. The CLO is a law-abiding
organisation, we cannot say or do anything that will interfere with the
judicial process.”
Documents
were leaked from one of the world's most secretive companies,
Panamanian law firm Mossack Fonseca, and show how the company has
allegedly helped clients launder money, dodge sanctions and evade tax.
Megastars
Jackie Chan and Lionel Messi are among the big names accused of using a
controversial Panama law firm to invest their millions offshore.
The
£26million stolen during the Brink’s Mat robbery in 1983 may have been
channelled into an offshore company set up by Mossack Fonseca, the
leaked documents reveal.
Families
and associates of Egypt's former president Hosni Mubarak, Libya's
former leader Colonel Gaddafi and Syria's president Bashar al-Assad are
among 12 world leaders who are said to have benefited from tax havens.
Lord
Ashcroft, Baroness Pamela Sharples and former Tory MP Michael Mates are
among the British politicians named in the data release.
King of Saudi Arabia, King Salman bin Abdulaziz bin Abdulrahman Al Saud (pictured left) was also named
Argentina's president Mauricio Macri (left) and Ukraine's president Petro Poroshenko (right) were listed
German
newspaper Suddeutsche Zeitung obtained the files and shared with the
International Consortium of Investigative Journalists but the identity
of the source who leaked them and how it was done is unknown.
The unprecedented leak of confidential documents reveal:
Putin's
name is not included in the records but his friends and associates
appear to have earned millions of pounds from deals that would have been
difficult to secure without his patronage. The BBC and The Guardian set out the details in the documents.
Among
the disclosures are that six members of the House of Lords and three
former Conservative MPs had offshore accounts, although the only British
politicians so far named are Lord Ashcroft, Tory peer Baroness Pamela
Sharples and former Conservative MP Michael Mates. Dozens of donors to
UK political parties had similar arrangements, the leak reveals.
Campaigners said David Cameron now faces a 'credibility test', having promised to end tax secrecy four years ago.
Lord
Ashcroft (left), Baroness Pamela Sharples and former Tory MP Michael
Mates (right) are among the British politicians also named in the data
release
UAE President Khalifa bin Zayed bin Sultan Al Nahyan (pictured centre) is one of the world leaders named
Convicted
former Ukraine prime minister Pavlo Lazarenko (left) and former prime
minister of Georgia Bidzina Ivanishvili (right) are among those revealed
to have offshore accounts
The ex-prime minister of Iraq Ayad Allawi (pictured) is also said to have benefited from using tax havens
The Prime
Minister of Iceland Sigmundur Davíð Gunnlaugsson (left) and former prime
minister of Qatar Hamad bin Jassim bin Jaber Al Thani (right) are both
named in the leaked documents
While
using offshore companies is not illegal, the practice has long been
morally dubious and is under the spotlight amid a wider examination of
tax avoidance by large companies such as Google.
Mr
Cameron has vowed to end 'tax secrecy' in the UK. But critics say
little has been done – with the Prime Minister due to hold his latest
summit on the issue next month.
Mr Cameron said four years ago that some offshore schemes were 'not fair and not right'.
'Frankly
some of these schemes where people are parking huge amounts of money
offshore and taking loans back just to minimise their tax rates, it is
not morally acceptable,' he added.
The
Prime Minister will now come under intense pressure to abolish all the
UK's tax havens, including the crown dependencies Jersey, Guernsey and
the Isle of Man.
In
2012, it emerged that the Prime Minister's father Ian ran a network of
entirely legal offshore investment funds to grow the family fortune. The
leaked records were obtained from an anonymous source by the German
newspaper Süddeutsche Zeitung, and shared by the International
Consortium of Investigative Journalists with The Guardian and the BBC.
The
data covers nearly 40 years, from 1977 to the end of 2015, and lists
nearly 15,600 paper companies set up for clients who wanted to keep
their financial affairs secret.
Thousands were created by UBS and HSBC, the latter of which was fined by the US government for laundering money from Iran.
Mossack Fonseca is Panamanian but runs a worldwide operation.
Among
national leaders with offshore wealth are Nawaz Sharif, Pakistan's
prime minister, and Sigmundur Davíð Gunnlaugsson, prime minister of
Iceland – who now faces calls for a snap election.
The
leaks also reveal a suspected billion-dollar money laundering ring that
was run by a Russian bank and involved close associates of President
Putin.
Mossack Fonseca said in a statement: 'Our firm has never been accused or charged in connection with criminal wrongdoing.
Families
and associates of Egypt's former president Hosni Mubarak (pictured
left), Libya's former leader Muammar Gaddafi (right) were also
implicated in the data leak
Former Emir of Qatar Sheikh Hamad bin Khalifa Al Thani (pictured) is also named in the data release
Former
prime minister of Jordan Ali Abu al-Ragheb (left) and former president
of Sudan Ahmad Ali al-Mirghani (right) were both listed in the leaked
confidential documents
'If we detect suspicious activity or misconduct, we are quick to report it to the authorities.'
Gerard
Ryle, director of the International Consortium of Investigative
Journalists, said the documents covered the day-to-day business at
Mossack Fonseca for the past 40 years.
He
said: 'I think the leak will prove to be probably the biggest blow the
offshore world has ever taken because of the extent of the documents.'
Revealed:
The money trail that leads from Vladimir Putin's best friend and head
of his 'crony bank' all the way back round to the Russian president
Leaked financial data reveals how a network of secret
offshore deals and huge loans worth £1.4billion created a trail
beginning and ending with Vladimir Putin, it has been reported.
A massive leak of documents reveal how the Russian president's best
friend Sergei Roldugin and the man who heads up Putin's 'crony
bank' Yuri Kovalchuk are linked to the movement of money offshore.
Bank
Rossiya, which Roldugin owns 3.2 per cent of, sent instructions to
Swiss lawyers who in turn got in touch with Mossack Fonseca.
The Panamanian law firm then set up offshore company Sandalwood Continental Ltd in the British Virgin Islands and other offshores linked to Roldugin.
The so-called Panama Papers implicate
those in Russian president Vladimir Putin's inner circle. This graphic
shows how Putin's best friend Sergei Roldugin, who owns 3.2 per cent of
Bank Rossiya, and the man who heads the bank up, Yuri Kovalchuk, are
linked to a trail which has seen money moved offshore via Swiss lawyers,
Mossack Fonseca, and a subsidiary of Russia's state-owned VTB bank in
Cyprus to a firm set up in the British Virgin Islands called Sandalwood
Continental Ltd. Money was then lent to Ozon, which owns the private
Igora ski resort outside St Petersburg, the place where Putin's daughter
Katya got married
But
the money later found its way back to Russia via Ozon, which was lent
$11.3million by Sandalwood in 2010/11. Ozon is the owner of the private
Igora ski resort outside St Petersburg, where Putin's daughter Katya got
married, according to The Guardian.
Putin's
name is not included in the leaked documents but his friends and
associates appear to have earned millions of pounds from deals that
would have been difficult to secure without his patronage.
Meanwhile Roldugin, a professional
musician, is said to have accumulated a fortune by being put in
control of a series of assets worth at least $100million.
Last week a senior Russian official revealed how the Kremlin was braced for an expose on Mr Putin's alleged secret fortune.
Spokesman
Dmitry Peskov, one of the president's closest aides, dismissed the
allegations as false and politically motivated even before they were
published.
He
said a number of foreign secret services were behind the claims, which
suggest that Mr Putin has amassed a secret personal fortune of more than
£28billion ($40billion).
Former
Tory MPs, party donors and David Cameron's late father among those
named in huge leak of documents linked to Panama law firm
Ian Cameron (pictured with his son), a
stockbroker and multi-millionaire, was a client of a controversial
offshore law firm based in Panama
Former
Tory MPs, party donors and the Prime Minister's late father were named
last night in a huge leak of millions of documents exposing the use of
offshore tax regimes by the world's richest people.
Ian Cameron, a stockbroker and multi-millionaire, was a client of a controversial offshore law firm based in Panama.
He was accused of using the firm, Mossack Fonseca, to shield his investment fund, Blairmore Holdings, Inc., from British taxes.
A series of British politicians were also said last night to be implicated in the massive data release.
It
was reported that six members of the House of Lords, three former
Conservative MPs and dozens of donors to British political parties have
been shown to have had offshore assets.
None
were named last night but revelations about the hidden wealth of
politicians and their supporters will trigger nerves in Number Ten as
names and details emerge from the leak this week.
If Tory donors or senior figures are implicated, it will be a huge embarrassment to the Prime Minister.
The
BBC and the Guardian last night set out details from the so-called
'Panama Papers' – 11.5million files leaked from the database of Mossack
Fonseca, the world's fourth biggest offshore law firm.
They
show that 12 national leaders are among 143 politicians, their families
and close associates from around the world known to have been using
offshore tax havens.
Close
associates of Russia's President Putin are also implicated, although
the Russian president's name is not said to appear directly on any
documents.
The
records were obtained from an anonymous source by the German newspaper
Süddeutsche Zeitung and shared by the International Consortium of
Investigative Journalists with the Guardian and the BBC.
Though
there is nothing unlawful about using offshore companies, the files
raise fundamental questions about the ethics of such tax havens – and
the revelations are likely to provoke urgent calls for reforms of a
system that critics say is arcane and open to abuse.
Among
national leaders with offshore wealth are Nawaz Sharif, Pakistan's
prime minister; Ayad Allawi, ex-interim prime minister and former
vice-president of Iraq; Petro Poroshenko, president of Ukraine; Alaa
Mubarak, son of Egypt's former president; and the prime minister of
Iceland, Sigmundur Davíð Gunnlaugsson.
The
leaks also reveal a suspected billion-dollar money laundering ring that
was run by a Russian bank and involved close associates of President
Putin.
The operation was run by Bank Rossiya, which is subject to US and EU sanctions following Russia's annexation of Crimea.
Revealed: £26million stolen in 1983 Brink's Mat heist may have been channelled offshore by Panama law firm
The
£26 million stolen during the Brink's Mat robbery in 1983 may have been
channelled into an offshore company set up by Mossack Fonseca, the
leaked documents reveal.
The
theft, dubbed the 'Crime of the Century', involved criminals stealing
gold bullion, diamonds and cash from the Heathrow International Trading
Estate in London.
The leaked files show that 16 months later, Mossack Fonseca set up a Panama shell company called Feberion Inc.
Documents show that the man behind Feberion Inc. was Gordon Parry, who laundered money for the Brink's-Mat plotters.
An
internal memo written in 1986 by Jürgen Mossack, one the co-founders of
Mossack Fonseca, showed that it knew it was 'apparently involved in the
management of money from the famous theft from Brink's-Mat in London'.
The
memo stated: 'The company itself has not been used illegally, but it
could be that the company invested money through bank accounts and
properties that was illegitimately sourced'.
Documents
appear to show that Mossack Fonseca later took steps to prevent British
police from gaining control of the company in an attempt to get the
money back.
The
robbery of gold bullion and jewels worth £26 million from the
Brink's-Mat vaults at London's Heathrow Airport at 6.30am on November
26, 1983, was Britain's biggest.
A bribed security guard let six armed men into the warehouse and within an hour had they pulled off 'the heist of the century'.
The
gang doused security guards at the warehouse in petrol and threatened
them with a lit match for the combination numbers of the vault.
It
is thought more than £17 million of the cash realised from the gold has
been accounted for by police, with the rest believed to be invested in
property in Britain and Spain or drugs.
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