The resignation of the Prime Minister of Iceland was the first prominent political fallout following the document leaks known as the Panama Papers, which have shed a harsh light on the private financial activities of many rich and powerful people.

Officials around the world, from Europe to Asia to the Americas, scrambled to contain the damage – particularly in Britain, where Prime Minister David Cameron, who has portrayed himself as a champion of financial transparency, was battling revelations in the leaks that members of his family, like many others, have hidden wealth in Panama.

The politicians, celebrities and sports figures identified in the leaks included associates of Russian President Vladimir Putin, President Petro Poroshenko of Ukraine, Prime Minister Nawaz Sharif of Pakistan, current and former members of China’s ruling politburo, relatives of Syrian President Bashar al-Assad, and FIFA, the worldwide association for soccer.

The leaked documents also revealed that our own Minister for Energy and Health Konrad Mizzi had set up a company in 2013 in Panama on the advice of Keith Schembri, chief of staff at the Office of the Prime Minister. While there was no suggestion of illegal activity, unfortunately for the hardworking Konrad Mizzi, this offshore fund was a huge mistake which in the end might cost him his political career.

In a further embarrassment to Mr Mizzi, who was pronounced deputy leader of the Labour Party by acclamation, the Panama Papers revealed that both he and Mr Schembri had tried to open an account in Dubai without any success...

Holding money offshore is not illegal, providing interest earned is declared to the authorities, but despite looking “relaxed” about calls for him to resign, Minister Mizzi has not done so yet.

 

Jos Edmond Zarb

Birkirkara