6/4/2016

ThePanamaPapersSprawlingWebofCorruption

ThePanamaPapersSprawlingWebofCorruption
Credit
TheHeadsofState

ThefirstreactiontotheleakeddocumentsdubbedthePanamaPapersissimplyaweatthescopeofthe
troveandtheingenuityoftheanonymoussourcewhoprovidedthepresswith11.5milliondocuments
2.6terabytesofdatarevealinginextraordinarydetailhowoffshorebankaccountsandtaxhavensare
usedbytheworldsrichandpowerfultoconcealtheirwealthoravoidtaxes.
Thencomesthedisgust.Withmorethan14,000clientsaroundtheworldandmorethan214,000
offshoreentitiesinvolved,MossackFonseca,thePanamabasedlawfirmwhoseinternaldocuments
wereexposed,piouslyinsistsitviolatednolawsorethics.Butthequestionsremain:Howdidallthese
politicians,dictators,criminals,billionairesandcelebritiesamassvastwealthandthenbenefitfrom
elaboratewebsofshellcompaniestodisguisetheiridentitiesandtheirassets?Wouldtherehavebeen
noreckoninghadtheleaknotoccurred?
Andthenthecorequestion:Aftertheserevelations,willanythingchange?Manyformaldenialsand
pledgesofofficialinvestigationshavebeenmade.Buttowhatdegreedothelawandpublicshamingstill
havedominionoverthisglobalelite?Apublicscarredbyrepeatedrevelationsofcorruptionin
government,sportsandfinancewilldemandtoknow.
IttookscoresofreportersconvenedbytheGermandailySddeutscheZeitung,therecipientofthe
leakedcache,andtheInternationalConsortiumofInvestigativeJournalists,withwhomitsharedthe
data,morethanayeartosortthroughtheinformation,anditwilltakegovernments,commissionsand
prosecutorsalongtimetodeterminewhatlawshavebeenviolated,whattaxeshavebeenavoidedand
whatremedialstepsmustbetaken.
Thefalloutfromtherevelationshasalreadybegun.TheprimeministerofIceland,SigmundurDavid
Gunnlaugsson,linkedinthepaperstoasecretaccount,onTuesdaybecamethefirstpublicofficial
forcedtoresign.BritainandGermany,amongothers,haveannouncedthattheyareinvestigating
whethercitizensnamedinthepapersavoidedpayingtaxes.Americansdonotfigureprominentlyinthe
datatrove,thoughthatshouldnotexcusetheUnitedStatesgovernmentfromjoininginathorough
investigation.
Offshorebankingisnotinitselfillegal,andnotallthosenamedshouldbepresumedtohavedone
wrong.ButitisclearthatthesecrecyofthesortSwissbanksformerlyprovidedandnowlawyersin
Panamaofferisamagnetforillgottenfortunesandtaxevaders.

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6/4/2016

ThePanamaPapersSprawlingWebofCorruption

Everyweekday,getthoughtprovokingcommentaryfromOpEdcolumnists,TheTimeseditorialboard
andcontributingwritersfromaroundtheworld.
Thepaperschronicleaglobalindustrydevelopedtoenableaninternationaleliteenrichedbycorruptor
illegalmeanstoconcealitswealthanddealingsfromtaxation,prosecutionandpublicwrath.They
exposethequestionablerichesthatpublicofficialshaveconcealed,whetherinIceland,Russia,China,
SaudiArabiaorMalaysia.PresidentXiJinpingofChinaandPresidentVladimirPutinofRussiahave
alreadyclampeddownonthemediaforshininganunwelcomelightontheshadyfinancialdealingsof
theircroniesandfamilymembers.
Aboveall,thePanamaPapersrevealanindustrythatflourishesinthegapsandholesofinternational
finance.Theymakeclearthatpolicingoffshorebankingandtaxhavensandtherogueswhousethem
cannotbedonebyanyonecountryalone.
Losttaxrevenueisoneconsequenceofthishiddensystemevenmoredangerousisitsdeepdamage
todemocraticruleandregionalstabilitywhencorruptpoliticianshaveaplacetostashstolennational
assetsoutofpublicview.
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Todaynewsletter.
AversionofthiseditorialappearsinprintonApril6,2016,onpageA22ofthe NewYorkeditionwiththe
headline:AGlobalWebofCorruption.Today'sPaper|Subscribe

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