You have probably heard the phrase “ The Panama Papers” dropped in casual conversations, emphatically reported on television and written all over newspapers by now. What exactly is going on? Over a year ago, an unknown source reached out to German Newspaper Süddeutsche Zeitung, leaking data about a Panamanian firm called Mossack Fonseca. These pages identified certain rich and powerful figures in the world and described how they had hidden their assets with the aid of Mossack Fonseca. This German newspaper reached out to a nonprofit organization called International Consortium of Investigative Journalists and after a great deal of analysis, the lid on many shady deals exploded. You can call it another Edward Snowden, but the information amounts to a total of 11.5 million files on information alleging 12 former or current leaders and a total of 128 political and/or public figures. Huge.
This information rattles the sturdy chairs of many leaders, starting with the prime minister of Iceland, Sigmundur Davíð Gunnlaugsson (who resigned on Tuesday, April 5 because of the scandal). According to CNN, documents alleged that he and his wife set up a company in the British Virgin Islands through Mossack Fonseca called Wintris, Inc. and held $4 million in bonds through three banks that collapsed in 2009. After some time, he sold half of his share to his wife for a dollar. Also, associates of Russian President Vladimir Putin are claimed to run “a clandestine network... that has shuffled at least $2 billion through banks and offshore companies.” These are just a few cases from the 11 million documents.
What exactly do these documents implicate? I assure you, it is nothing good. There is a whole parallel world fueled by powerful figures who want to evade taxes and opportunistic companies that help them do so. As a result, bribery, financial fraud, arms deal, tax evasion and drug trafficking are untraceable, or were before the leak. What’s even worse are the victims who suffer from these shady dealings. These documents show the hideous corruption underneath the clean tuxedo of wealthy people. And why should corruption matter? Corruption fuels anger. Corruption shows that you have to pay your taxes and you go to jail for your crimes, but only if you are poor. Corruption tells you that the rich evade the laws, going unpunished for money laundering and becoming even richer.
You should be mad. In fact, many people are. Syria has bombed more than 21,000 of its civilians with its air force. Homes have been destroyed and businesses and hospitals have crumbled into dust. Russian businessmen have kidnapped orphaned children, raped them and sold them for sex trade. Guess who is supplying money for fuel to Syrian air forces? Guess to which company one of the ringleaders of the child prostitution belong? Mossack Fonseca. A Ugandan company sold an oil field and evaded $4 million in taxes. Through which company? Mossak Fonanca. In a country where one in three people survive on about a dollar a day, where hospitals do not have any basic equipment like sterile gloves and where there exists a high rate of infant mortality, $4 million means life or death.
The Panama Papers are likely to create a turbulent ripple across the world, exposing the gluttonous bellies of rich, undermining regimes whether they are democratic and anger the individuals of countries who are the victims of these corruptions. Now let us see how these alleged world leaders and public figures deal with these documents.
Sharon Lam is a sophomore neuroscience major from Syossett, N.Y.
