PANAMA PAPERS

A BUSINESS MATTER OR A POLITICAL ISSUE?

INTRODUCTION
What is the Panama Issue?
Leaked documents from the database of Mossack Fonseca
Contained personal financial information about number of wealthy individuals- previously kept
private
The documents show the ways in which the rich individuals can avoid paying tax by making
offshore companies
13000 owners from all over the world were involved
INTRODUCTION
THE STRUCTURE OF PANAMA LEAKS
BACKGROUND
Mossack Fonseca was the world’s 4th largest provider of offshore services in 2016

In early 2015 a ‘whistleblower’ from the firm leaked Panama Papers to the German Newspaper
Suddeutsche Zeitung

Thereafter it shared them with the International Consortium of Investigative Journalists (ICIJ), a

U.S. based global network.
BACKGROUND
The ICIJ then shared the material with 107 media organizations in 80 countries.

The leaked documents were structured in emails, PDFs, images and text documents.

After the publication of the leaks, Mossack Fonseca strongly denied any wrongdoing.
RATIONALE
Impact of the leaks

Of interest to the whole world

What the leaks actually entail, and their ramifications

SIGNIFICANCE
A great significance on the lives on Pakistan’s last Prime Minister Nawaz Sharif and his family
Along with many other leading businessmen of the world
Nawaz Sharif along with Maryam Nawaz and Hussain Nawaz were very much criticized for this
case and till today
Opposing parties turned against Nawaz Sharif and his family
His political career was ruined
Negative impact on the image of Pakistan as a country
SIGNIFICANCE
All our discussions and related literature in our paper show that this was not merely a political
issue.

259 businessmen from just Pakistan are involved in this case.

 Research focuses on the articles that are related to the details of Panama Leaks and which
specify it more as a business matter rather than political matter.
PANAMA PAPERS
INTERNATIONAL COMMUNITY
A political or business issue?
Over 40 countries involved and implicated
Publicized as a political issue
Impact ranged from:
• Debates among readers
• To officials at the center of stories
• To governments officials
• Prosecutors
• Law enforcement authorities
PANAMA PAPERS
INTERNATIONAL COMMUNITY
The Case of Russia
$2bn offshore trail that led to Vladimir Putin
Putin was not proved to be directly involved in the transactions
Sergei Roldugin (Putin’s Best Friend), and his close circle were involved
Anti-government lawyer, Alexay Navalny found Putin to be guilty
The papers showed a direct link to Putin’s daughter, Katerina
PANAMA PAPERS
INTERNATIONAL COMMUNITY
The Case of Iceland
Prime Minister Gunnlaugsson was blamed to have shares in Wintris (an offshore company)
The country would turn into a ‘Banana Republic’
Iceland’s Krona collapsed
Gunnlaugsson denied the allegations at first but then came clean.
400 Icelanders were caught evading tax through foreign offshore companies
PANAMA PAPERS
INTERNATIONAL COMMUNITY
President of FIFA
Gianni Infantino, was caught up in the sport’s corruption scandal
He was director of legal services at Union of European Football Associations (UEFA)
UEFA denied any wrongdoing by any of its officials
Infantino said that he is ‘dismayed’ that his 'integrity is being doubted’.
PANAMA PAPERS
INTERNATIONAL COMMUNITY
These are Businessmen first of which some happen to be politicians
The media has made it a political issue because of the politicians involved
Illegal activities took place including
• Fraud
• Tax evasion
• Evading international sanctions
These are more of business issues rather than political ones.
PANAMA PAPERS
PAKISTAN’S CONTEXT
No black and white in case of Pakistan for this situation
More than 444 Pakistani nationals mentioned in the Leaks to date
Important Pakistani’s mentioned in the Panama Leaks include:
• Business elites
• Politicians
• Media Personnel
• Judges
PANAMA PAPERS
PAKISTAN’S CONTEXT
Most high profile case: The Sharif Family Case
Mentioned names:
• Maryam Nawaz
• Hassan Nawaz
• Hussain Nawaz

Avenfield Property: First brought to public attention in 1998

Major Issue: Owning assets beyond income, absence of a legal money trail
PANAMA PAPERS
PAKISTAN’S CONTEXT
Dismissal of Sharif for the third time as the PM
Formation of a Joint Investigation Commission (JIT) by the Apex Court
Investigations and Trials that lasted for 9 months
The entire Sharif Family found guilty
• Nawaz Sharif: 10 Year prison sentence, £8 million fine, barred from contesting in elections for life
• Maryam Nawaz: 7 Year prison sentence, £2 million fine, barred from contesting in elections for 10 years
• Hassan and Hussain Nawaz: Issuance of nonbailable, perpetual warrants of arrest against them.
PANAMA PAPERS
PAKISTAN’S CONTEXT
Pakistani political figures of importance (and/or their relatives) mentioned in the Panama Papers
Relatives of the then Punjab Chief Minister Shahbaz Sharif: Samina Durrani and Ilyas Mehraj
(linked to 7 companies)
Benazir Bhutto was linked to one company
Javed Pasha (close friend of Asif Ali Zardari, linked to 4 companies)
PPP Senator Rehman Malik (1 company)
PPP Senator Osman Saifullah’s family (34 companies)
PANAMA PAPERS
PAKISTAN’S CONTEXT
Prominent business elites linked with offshore companies in the Leaks:
• Real Estate Czar Malik Riaz Hussain’s son
• Owner of Pizza Hut Aqeel Hussain
• Chairman of Habib Bank Limited Sultan Ali Allana
• Former NIB bank President Khawaja Iqbal Hassan
• The Abdullah family of Sapphire Textiles
• Mir Shakil-ur-Rehman of GEO and Jang Group

Mention of one Lahore High Court Judge, Justice Farrukh Irfa

PANAMA PAPERS
PAKISTAN’S CONTEXT
All of these names, even if they are politicians are ‘businessmen’ on the side
Why the issue is considered more political than business related in Pakistan?

Politicians

Business elites

Large amounts of state treasure will be recovered if we treat the entire set of business elites with the
same urgency as is the ‘political subset’ dealt with.
CONCLUSION
The leaks had long reaching effects

They condemned people in Political offices but these were only a small portion

Public had an understandable reaction

Not much attention given to people with no political ties

A business matter but mostly treated as a political one

RECOMMENDATIONS
Surveillance of offshore activities of citizens
Measures to make the tax system more efficient
Across the board accountability for politicians and businessmen alike
Limitations on owning offshore assets for citizens of the country
Proper check and record keeping of every citizen’s income sources