[ad_1]
An unprecedented leak of financial records known as the Pandora Papers has revealed the offshore financial assets of dozens of current and former world leaders and hundreds of politicians from Asia and the Middle East to Latin America.
The International Consortium of Investigative Journalists obtained 11.9 million confidential documents from 14 separate legal and financial services firms, which the group said offered “a sweeping look at an industry that helps the world’s ultrawealthy, powerful government officials and other elites conceal trillions of dollars from tax authorities, prosecutors and others.”
Moving money through offshore accounts, in mostly low-tax jurisdictions, is legal in most countries, and many of the people named in the data release aren’t accused of criminal wrongdoing. But the journalist group said the 2.94 terabytes of financial and legal data — which makes this leak larger than the 2016 Panama papers release — shows the “offshore money machine operates in every corner of the planet, including the world’s largest democracies,” and involves some of the world’s most well-known banks and legal firms.
Here are some of the biggest revelations in the release:
Jordan king’s real estate empire
Jordan’s monarch, King Abdullah II, used an English accountant in Switzerland and lawyers in the British Virgin Islands to secretly purchase 14 luxury homes worth $106 million, including a $23 million property in California overlooking a beach, the ICIJ reported, noting the country relies on foreign aid to support its people and house millions of refugees. U.K. attorneys for the king told the ICIJ that he was not required to pay taxes under Jordanian law, has never misused public funds and has “security and privacy reasons to hold property through offshore companies.”
ALSO READ: Indian cricket hero named in data leak on offshore dealings of superrich
French Riviera estate
Czech Prime Minister Andrej Babis, who is currently running for re-election, “moved $22 million through offshore companies to buy a lavish estate on the French Riviera in 2009 while keeping his ownership secret,” ICIJ said. The five-bedroom Chateau Bigaud, which is owned by a subsidiary of one of Babis’s Czech companies, sits on 9.4 acres (3.8 hectares) in a hilltop village where Pablo Picasso spent the last years of his life, the group said.
The Queen and Azerbaijan
The data release revealed that Azerbaijan’s ruling Aliyev family traded around $540 million worth of U.K. property in recent years, reported the Guardian, one of the ICIJ’s media partners. Queen Elizabeth II’s crown estate bought one property worth almost $91 million from the family, and is currently in the middle of an internal review into the purchase, the Guardian said. “Given the potential concerns raised, we are looking into the matter,” a spokesperson for the crown estate told the paper, which added the Aliyevs declined to comment.
South Dakota, Nevada havens
One of the most “troubling revelations” for the U.S. was the role of South Dakota, Nevada and other states that have adopted financial secrecy laws that “rival those of offshore jurisdictions” and demonstrate America’s “expanding complicity in the offshore economy,” said the Washington Post, one of the ICIJ’s media partners. A former vice president of the Dominican Republic finalized several trusts in South Dakota to store his personal wealth and shares of one of the country’s largest sugar producers, the paper said.
Pakistan’s political elite
Several members of Pakistani Prime Minister Imran Khan’s inner circle, including current and former cabinet ministers, “secretly owned an array of companies and trusts holding millions of dollars of hidden wealth,” the group reported. That could create a political headache for the former cricket star, who campaigned for the South Asian country’s highest office as the head of a reformist party that promised a strong anti-corruption agenda. Before the release of the Pandora papers, a Khan spokesperson told a news conference Khan had no offshore company, but ministers and advisers “will have to be held accountable” for their individual acts.
Tony Blair property purchase
The documents show former U.K. Prime Minister Tony Blair and his wife saved around $422,000 by using an offshore company to purchase an almost $9 million office in London’s Marylebone area that was partially owned by the family of a Bahraini minister, the Guardian reported. The paper said there was nothing illegal about the deal, but it “highlights a loophole that has enabled wealthy property owners not to pay a tax that is commonplace for ordinary Britons.”
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
