LONDON — The Prime Minister of Iceland resigned late last night after an enormous leak of documents from a secretive Panamanian law firm about offshore shell companies and tax shelters.
The resignation of the premier, Mr Sigmundur David Gunnlaugsson, is the first prominent political fallout from the document leaks, and it was announced on television by the country’s Agriculture Minister, Sigurdur Ingi
Johannsson — who is also the deputy chairman of Mr Gunnlaugsson’s Progressive Party. The announcement was confirmed by the state broadcaster, RUV.
The Panama Papers reported that Mr Gunnlaugsson and his wealthy wife, Ms Anna Sigurlaug Palsdottir, had set up a company in 2007 in the British Virgin Islands through Mossack Fonseca. But the company, Wintris Inc, lost millions of dollars as a result of the 2008 financial crash that crippled Iceland, and is claiming about US$4.2 million from three failed Icelandic banks.
As Prime Minister since 2013, Mr Gunnlaugsson was involved in reaching a deal for the banks’ claimants, so he is now being accused of having a conflict of interest.
The Panama Papers have implicated close associates of President Vladimir Putin of Russia, current and former members of China’s ruling politburo, and Malaysian Prime Minister Najib Razak’s son Mohd Nazifuddin Mohd Najib, among others.
Angry responses and denials of wrongdoing have followed.
The leaked documents drew immediate attention yesterday from the United States Justice Department, which could be interested in using them as a road map of diplomatic, financial and criminal dealings around the globe that are connected to the US and its financial system.
The White House Press Secretary Josh Earnest declined to comment specifically on the documents, but said the US remained a “leading advocate for increased transparency in the international financial system, and in working against illicit financial transactions and in fighting corruption”.
Germany, France, Australia, New Zealand, Austria, Sweden and the Netherlands were among nations that have commenced, or are considering launching investigations.
The Panamanian state prosecutor’s office has said it will launch a criminal investigation aimed at establishing what crimes might have taken place as detailed in the Panama Papers and who committed them.
With the leak implicating a number of high-level Chinese politicians, including Chinese President Xi Jinping through his brother-in-law Deng Jiagui, Chinese Foreign Ministry spokesman Hong Lei yesterday declined to comment on the documents, and refused to answer questions about whether China would investigate any of the offshore tax affairs of the relatives of top leaders.
China — where the Panamanian law firm in question, Mossack Fonseca, has more branches than in any other country — yesterday moved to limit coverage of the issue.Internet searches for the word “Panama” on Chinese search engines brought up stories in Chinese media on the topic, but many of the links have been disabled or open to stories about allegations directed at sports stars.
Chinese state media has largely avoided any reporting of the Panama Papers, with Internet searches for “Panama Papers” in Chinese bringing up a warning that the results “may not accord with relevant laws and rules so can’t be shown”.
China’s Internet regulator did not immediately respond to a request for comment. AGENCIES
