Locals read the morning newspapers reporting a statement issued by President Uhuru Kenyatta following reports that he is among more than 330 current and former politicians identified as beneficiaries of secret financial accounts, in the low-income Kibera neighborhood of Nairobi, Kenya Tuesday, Oct. 5, 2021. Calls are growing for an end to the financial secrecy and shell companies that have allowed many of the world's richest and most powerful people to hide their wealth from tax collectors.
Pandora Papers show how tax havens are part of the global inequity problem
"We're not looking at a couple of million dollars, here. We are looking at trillions of dollars."
By Jason Beaubien/NPR
Brian Inganga / AP Photo
Locals read the morning newspapers reporting a statement issued by President Uhuru Kenyatta following reports that he is among more than 330 current and former politicians identified as beneficiaries of secret financial accounts, in the low-income Kibera neighborhood of Nairobi, Kenya Tuesday, Oct. 5, 2021. Calls are growing for an end to the financial secrecy and shell companies that have allowed many of the world's richest and most powerful people to hide their wealth from tax collectors.
(Washington) — A huge trove of leaked financial documents called the Pandora Papers has exposed the offshore financial dealings of hundreds of the world’s global elites, including more than 330 politicians from nearly 100 countries.
“We’re not looking at a couple of million dollars, here,” says Gerard Ryle, director of the ICIJ, in a video accompanying the release. “We are looking at trillions of dollars.”
The massive leak shows wealthy individuals from all over the world parking money in Caribbean tax havens, hiding assets in foreign trusts and shielding their wealth in opaque Panamanian corporations. Of 12 sitting heads of state implicated in the Pandora Papers, most are from low- or middle-income countries, as are many other politicians and other figures. Brazil, Ivory Coast, Gabon, India, Pakistan and Sri Lanka are among the countries on the list.
“We literally have countries where people are starving, queuing for food, while their leaders are living lavish lifestyles abroad,” says Maíra Martini, a money laundering expert with Transparency International who’s based in Berlin. Martini and Transparency International were not part of the investigative team that released the Pandora Papers.
“The impact is devastating,” she says. “You have money that should be used to finance public service such as health, education and housing that ends up financing luxury homes and yachts and other luxury goods abroad. That’s very, very concerning.”
The financial records come from 14 law firms. ICIJ isn’t disclosing the exact origins of the leaks to protect its sources. The documents include bank statements and ownership records of assets held in the British Virgin Islands, Belize, Panama, South Dakota, Samoa, the Seychelles and other jurisdictions that actively cater to investors seeking secrecy.
Mulugeta Ayene / AP Photo
Kenya’s President Uhuru Kenyatta, right, greets Nigeria’s President Muhammadu Buhari, center, at the inauguration ceremony of Ethiopia’s President Abiy Ahmed after he was sworn in for a second five-year term, in the capital Addis Ababa, Ethiopia Monday, Oct. 4, 2021. Calls grew Monday for an end to the financial secrecy and shell companies that have allowed many of the world’s richest and most powerful people to hide their wealth from tax collectors, following a report by the International Consortium of Investigative Journalists, with Kenya’s President Uhuru Kenyatta one of 330 current and former politicians identified as beneficiaries of the secret accounts.
Among the current heads of state implicated in the Pandora Papers is Kenyan President Uhuru Kenyatta, along with six members of his family. The papers allege that they control a network of offshore companies and foundations in Panama and the British Virgin Islands worth more than $30 million.
Azerbaijani President Ilham Aliyev’s family is alleged to have been involved in property deals in Britain worth hundreds of millions of dollars. His son, Heydar Aliyev, now a young adult, was just 11 years old when he became the shareholder in a company based in the British Virgin Islands that purchased a building in the upscale London neighborhood of Mayfair for $49 million.
“If you look at the individuals on the list, most come from countries that have the highest inequality levels,” says Martini of Transparency International.
One example is Chile. The documents link Chilean President Sebastián Piñera (who made a fortune in the credit card business before entering politics) to more than $100 million parked in shell companies in the British Virgin Islands.
The former head of the Philippines’ Presidential Commission on Good Government is on the list as well.
Most individuals accused of hiding assets in the Pandora Papers either declined to discuss the matters with ICIJ or stated that their offshore accounts were legal.
Within hours of the publication of the Pandora Papers, several countries’ tax authorities, including in India, said they plan to investigate any potential criminal activity.
