Skip to main content
Gifts from The Morning Star
Trade unions call for global clean-up on tax avoidance
Leaks expose huge list of politicians and monarchs tied up in scandal

LEFT parties and trade unions called for a clean-up of tax avoidance and corruption yesterday in the wake of the explosive Panama Papers leak.

Politicians, monarchs and drug barons from around the world have been linked to Panamanian law firm Mossack Fonseca, from where the incriminating documents were stolen by hackers.

The leaked papers list thousands of companies and wealthy individuals who have funnelled money to offshore accounts in tax havens set up by Mossack Fonseca.

The documents were published by the US-based International Consortium of Investigative Journalists (ICIJ) and its parent body the Organised Crime and Corruption Reporting Project (OCCRP).

The latter is funded by the US government through the US Agency for International Development (USAid), which has organised regime change activities in Cuba and Bolivia.

The Greens/European Free Alliance in the European Parliament called on the EU to crack down on tax dodging.

And in Australia, where some 800 individuals are being investigated following the leak, the Council of Trade Unions called on PM Malcolm Turnbull — whose Liberal Party faces charges of receiving illegal donations — to establish a national anti-corruption commission.

ARGENTINA

President Mauricio Macri’s business group used Mosack Fonseca to set up a company in the Bahamas in 1998, subsequently wound up in 2009. Mr Macri was was a director and vicepresident of Fleg Trading while serving as mayor of Buenos Aires, but never disclosed his interest in the firm. His office claimed that he had no shares in the company and never received income from it.

BRAZIL

Parliamentary speaker Eduardo Cunha, already facing charges in the “Car Wash” bribery scandal at state oil company Petrobras, is indirectly implicated. Idalecio de Castro Rodrigues de Oliveira, accused of paying bribes to Mr Cunha — would-be nemesis of left-wing President Dilma Rousseff — is listed in the files.

RUSSIA

While President Vladimir Putin is not directly implicated, up to $2 billion (£1.4bn) has been “shuffled through” offshore accounts linked to his associates, according to the International Consortium of Investigative Journalists. The private Bank Rossiya, which Mr Putin patronises, built a network of offshore companies including Sandalwood Continental, funds from funds from which to buy luxury items such as a yacht which were delivered to ports in the country. Many accounts were in the name of Sergey Roldugin, a cellist who is godfather to Mr Putin's daughter.

UKRAINE

Multimillionaire President Petro Poroshenko promised to sell sweets manufacturer Roshen when he ran for office in 2014. Instead he transferred it to a holding company in the British Virgin Islands. His financial advisers claim that was to make Roshen more attractive to potential international buyers, but it also saved the leader of the Kiev coup regime millions in tax.

MEXICO

President Enrique Pena Nieto’s “favourite contractor” Juan Armando Hinojosa, who built his business empire with the help of lucrative government contracts, is on the list. He was previously involved in the 2014 “White House scandal” where First Lady and soap opera actress Angea Rivera bought a £5 million mansion, claiming that she borrowed £2.8 million of that from one of Mr Hijonosa’s firms.

ICELAND

Prime Minister Sigmundur David Gunnlaugsson refused to resign yesterday after the leak revealed he and his wife Anna Sigurlaug Palsdottir set up British Virgin Islands firm Wintris in 2007. He allegedly sold his half of the company to Ms Palsdottir for $1 on December 31 2009, the day before a new law took effect that would have required him to declare the ownership as a conflict of interest. Foreign Minister Gunnar Bragi Sveinsson insisted that the PM had done nothing illegal, saying: “There is nothing strange there.”

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
More from this author
A Turkish missile is fired at Kurdish forces in Afrin
World / 9 February 2018
9 February 2018
United States / 9 February 2018
9 February 2018
South America / 9 February 2018
9 February 2018
South Africa / 8 February 2018
8 February 2018
Similar stories
IN THE US DEEP POCKETS: A demonstration by ‘Damas de Blanc
Features / 17 April 2025
17 April 2025

The money tap to anti-Cuban agitators will never be shut off under Trump

A cargo ship goes through the Panama Canal's Cocoli locks in
Features / 6 March 2025
6 March 2025
Trump’s threats to ‘take back’ the canal amid false claims of Chinese influence have sparked nationwide protests and evoked painful memories of 1964, when US troops killed 21 Panamanian student protesters, reports TAN WAH PIOW
MORE THAN MEETS THE
EYE: While USAid does
provide humanitari
Features / 16 February 2025
16 February 2025
With its track record of leveraging cultural power for US gain and barely concealed promotion of coup attempts, the US Agency for International Development will not be mourned among the US’s southern neighbours, write JOHN PERRY and ROGER D HARRIS
Cargo containers sit stacked as cranes load and unload conta
Features / 7 February 2025
7 February 2025
The Trump administration increases its interventionist rhetoric and actions regarding the Panama Canal, as China upholds its longstanding support of Panamanian sovereignty, writes TINGS CHAK