Why the Panama Papers really are a big deal
April 15, 2016
When it comes to digging up dirt, investigative journalists know how to do it correctly and covertly. However, a number of German journalists uncovered some big news that shocked the world. Earlier last week, a number of independent investigative German journalists uncovered what are now called the “Panama Papers”.
The Panama Papers might not sound like a big deal, but in reality they really are. In the simplest of terms, the Panama Papers are 11.5 million leaked files from the database of Mossack Fonseca, located in Panama, which is the fourth biggest offshore law firm. A German newspaper called the Süddeutsche Zeitung obtained the papers anonymously.
Essentially, the Panama Papers reveal tax corruption. According to The Guardian, an online newspaper, the documents show the “myriad ways in which the rich can exploit secretive offshore tax regimes.” 12 world leaders, including the likes of Vladimir Putin and Bashar al-Assad among others, were named to the list, as well as 143 other politicians, their families, and close members of their inner circle.
Other members listed were Nawaz Sharif, Pakistan’s prime minister; Ayad Allawi, ex-interim prime minister and former vice-president of Iraq; Petro Poroshenko, president of Ukraine; Alaa Mubarak, son of Egypt’s former president; and the prime minister of Iceland, Sigmundur Davíð Gunnlaugsson. The prime minister of Iceland even resigned last week due to massive protests in Iceland.
Big names in the sports community are also listed. FIFA, who have recently subdued their scandals by electing new president Gianni Infantino to replace Sepp Blatter, are named on the list. Also named on the list is Argentine superstar Lionel Messi, who plays club level at Barcelona. Messi could even face up to 22 months in prison for his involvement with the Panama Papers.
Recently connected to the Panama Papers was the United Kingdom’s Prime Minister David Cameron. Cameron even released his tax report due to his name being on the papers. The UK has a big influence with Mossack Fonseca, as half of the companies registered with them are British.
This scandal is huge for a number of reasons. Statistically, this is the biggest leak in the history of modern technology. It’s bigger than the 2010 WikiLeaks and the Edward Snowden leaks in 2013. To be specific, there were 11.5 million documents leaked, which is rounded to be 2.6 terabytes of Mossack Fonseca’s data.
Another reason why this is important is because a number of United States officials are said to be on the list. No American names have been leaked yet, but many are expecting big names like Donald Trump and Hillary Clinton to make an appearance on the list. However, neither have yet to be named to the Panama Papers, thus far.
It will be an interesting turn of events if Clinton and Trump are named to the list. If they are, the race for the White House would seemingly go to a Bernie Sanders versus Ted Cruz. Right now, as it were to seem, the race for the White House might depend on the outcome of the Panama Papers.