Everything About the Pandora Papers Leak That Exposes World Leaders’ Hidden Wealth

Before the internet, a leak was just something that happened in your kitchen.

Now, whenever the word gets mentioned in the headlines, the rich, powerful, and famous start sweating, hoping nothing incriminating or embarrassing of theirs has been uncovered.

But that’s exactly what happened to a lot of them recently.

Thanks to a large investigative team of journalists from all over the world, the financial secrets of hundreds of politicians and celebrities have been exposed in a large leak of financial documents.

The leak, dubbed the Pandora Papers, is grabbing all the headlines at the moment.

So, what are the Pandora Papers all about, and who is implicated in it?

Here’s everything you need to know about the Pandora Papers, the largest leak of offshore data in history.

The Latest in a Long Line of Leaks

The Pandora Papers are merely the latest in a long line of finance leaks in the past decade.

Last year, the “FinCEN Files” brought to light 200,000 suspicious financial transactions valued at over US$2 trillion that occurred from 1999 to 2017 across multiple global financial institutions.

And in 2016, the “Panama Papers” leaked personal financial information about wealthy individuals and public officials that had previously been kept private.

Until the Pandora Papers had been revealed, the Panama Papers was the biggest leak of offshore data, as it had 11.5 million leaked documents.

Who Leaked the Documents?

The Pandora Papers were obtained by an investigative team of more than 600 journalists in 117 countries called the International Consortium of Investigative Journalists (ICIJ).

The consortium worked with over 140 media organisations to obtain the data, including The Guardian and The Washington Post. 

According to the ICIJ, their investigation was based on a “leak of confidential records of 14 offshore service providers that give professional services to wealthy individuals and corporations seeking to incorporate shell companies, trusts, foundations and other entities in low- or no-tax jurisdictions.”

In total, they managed to get their hands on over 11.9 million leaked documents. 

What Do the Pandora Papers Reveal?

The Pandora Papers details how powerful politicians and celebrities all over the world have offshore companies to avoid taxes and hide their wealth.

These documents allegedly show:

• the creation of shell companies, foundations, and trusts, and the use of such entities to purchase real estate, yachts, jets, and life insurance
• estate planning and other inheritance issues
• the avoidance of taxes through complex financial schemes

Some documents are allegedly tied to financial crimes, which include money laundering. 

The investigation also reportedly showed that banks and law firms work closely with offshore service providers to design complex corporate structures.

Despite providers having an obligation not to do business with those who engage in questionable dealings, some providers don’t even know their customers.

Who Was Implicated? 

According to the ICIJ, those implicated include more than 330 politicians and 130 Forbes billionaires, as well as celebrities, fraudsters, drug dealers, royal family members, and leaders of religious groups from around the world.

What’s more, more than a dozen are currently serving as heads of state and heads of government.

Woah. 

Some of the rich and infamous people named in the Pandora Papers include:

Heads of State

• Abdullah II, King of Jordan
• Luis Abinader, President of the Dominican Republic
• Ilham Aliyev, President of Azerbaijan
• Milo Đukanović, President of Montenegro
• Uhuru Kenyatta, President of Kenya
• Guillermo Lasso, President of Ecuador
• Denis Sassou Nguesso, President of the Republic of the Congo
• Ali Bongo Ondimba, President of Gabon
• Sebastián Piñera, President of Chile
• Tamim bin Hamad Al Thani, Emir of Qatar
• Volodymyr Zelensky, President of Ukraine

Heads of Government 

• Patrick Achi, Prime Minister of Côte d’Ivoire
• Andrej Babiš, Prime Minister of the Czech Republic
• Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister of the United Arab Emirates and Emir of Dubai
• Najib Mikati Prime Minister of Lebanon

Celebrities 

• Carlo Ancelotti – Italian football manager
• Miguel Bosé – Spanish singer
• Ángel Di María – Argentine football player
• Pep Guardiola- Spanish football manager
• Julio Iglesias – Spanish singer
• Corinna zu Sayn-Wittgenstein-Sayn – German-born Danish princess and entrepreneur
• Shakira – Colombian singer
• Claudia Schiffer – German model
• Sachin Tendulkar – Indian Cricketer

Major Finds

One of the biggest finds in the investigation was that Abdullah II, the King of Jordan, had spent over S$128 million on properties in the UK and US through secretly-owned companies. He reportedly did this to create a network of tax havens.

His purchases are especially notable given how protests have taken place in Jordan recently over tax raises and austerity measures.

The King’s lawyers, however, said all the properties were bought with personal wealth.

Other revelations include documents which allegedly show that Kenyan President Uhuru Kenyatta – who has campaigned against corruption – owns a network of 11 offshore companies, together with six family members.

Members of Pakistan Prime Minister Imran Khan’s inner circle, including family members, were also allegedly found to secretly own companies and trusts holding millions of dollars.

In response, Khan promised to investigate any wrongdoing.

Other surprising names on the list included singer Shakira and Indian cricket legend Sachin Tendulkar, who were two of several celebrities whose names were allegedly linked to offshore accounts.

However, their lawyers say the investments were legitimate and did not enable them to avoid tax.

Are Tax Havens Illegal?

As the ICIJ pointed out, it’s technically not illegal in most countries to have assets offshore. It is, however, often seen as unethical.

How it works is that rich, powerful people set up a shell company in a country with high levels of secrecy.

This company has no office or employees, of course; it exists only in name. The shell company is then used to make purchases or hold passive investments.

In doing so, many of them avoid paying tax on their wealth.

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Featured Image: Facebook (Sachin Tendulkar; Shakira) ; Youtube (United Nations; CBC News: The National)