The story, in simple terms, is about leaked documents from a global law firm called "Mossack Fonseca," one of the world's largest law firms. It has been operating for 40 years and is known for its significant influence in international cases, customs clearance, and global money movements and investments.
The firm is based in Panama, an important business hub due to the Panama Canal, which connects the Pacific and Atlantic Oceans and is managed by the United States. Panama is also known for its "offshore" companies, often used as backdoors for suspicious financial operations.
These documents led the firm's founder and president, "Ramon Fonseca Mora," to issue a statement calling the leaks "a crime and an attack on the entire state of Panama." However, he did not deny the authenticity of the documents. The Panamanian government announced it would open a judicial investigation into these leaked documents.
How Did the Story Begin?
An anonymous person sent a massive collection of documents to a German newspaper called "Süddeutsche Zeitung." The records consist of 11.5 million files with data totaling 2.6 terabytes. These documents include original images of financial transactions and personal documents of more than 214,000 offshore companies in over 200 countries.
The documents accuse 140 political leaders, including 13 current and former heads of state and government, of moving their money to other countries through money laundering, tax evasion, and outright theft. The leaks continued until December 2015.
The German newspaper shared these documents with 370 international journalists from more than 70 countries to verify their authenticity. Global media organizations, including "The Guardian" and "BBC," participated in analyzing the documents.
The president of the "International Consortium of Investigative Journalists" (ICIJ), based in Washington, stated that these documents represent "the biggest leaks in history." They were published on a dedicated website called "Panama Papers."
Names Involved:
The documents implicated prominent figures around the world, including:
- Hosni Mubarak and his son Alaa in collaboration with HSBC Egypt.
- Russian President Vladimir Putin and his associates.
- Syrian President Bashar al-Assad.
- Former Libyan President Muammar Gaddafi.
- Nawaz Sharif, Prime Minister of Pakistan.
- Iyad Allawi, former Prime Minister of Iraq.
- Petro Poroshenko, President of Ukraine.
- Sigmundur Davíð Gunnlaugsson, Prime Minister of Iceland.
- Argentine President Mauricio Macri.
- The family of Azerbaijani President Ilham Aliyev.
- The father of UK Prime Minister David Cameron.
- Members of the British Parliament.
- Key members of the FIFA Ethics Committee.
- Princes, kings, and their families from the Arabian Gulf region.
- Barcelona footballer Lionel Messi and his father.
- Prominent sports figures like Michel Platini and Jérôme Valcke.
Reactions:
Australia: The Australian Taxation Office announced it would start investigating the Panama Papers leaks to verify tax evasion and money laundering involving more than 800 wealthy Australian clients linked to 120 companies and service providers in Hong Kong.
Iceland: Thousands of protesters demanded the resignation of the Prime Minister involved in the leaks.
Summary:
What has been revealed so far from these documents is a small part of a global scandal that could have enormous consequences. What's hidden may be even more significant, and what's yet to come could be even more significant.