Big China presence for Panama law firm
beijing — The Panamanian law firm at the heart of a massive leak of offshore banking records has more offices in China than any other country, its website shows, raising questions about its activities in the Communist-ruled country.
The scandal erupted on Sunday when media groups began revealing the results of a year-long investigation into a trove of 11.5 million documents from Panamanian law firm Mossack Fonseca, which specialises in creating offshore shell companies.
At least eight current or former members of China’s Politburo Standing Committee, the ruling party’s most powerful body, have been implicated, according to reports.
Mossack Fonseca operates branches in eight Chinese cities, including Hong Kong, its website showed on Tuesday.
The British-based Guardian newspaper said an internal Mossack Fonseca survey found the biggest proportion of its offshore company owners came from mainland China, followed by Hong Kong. Under President Xi Jinping, Beijing has launched a much-publicised anti-corruption drive, but has not instituted systemic reforms such as public declarations of assets to try to combat the scourge.
Among those named in the “Panama Papers” are close associates of Russian leader Vladimir Putin, and President Xi’s brotherin-law, who was previously identi- fied in a New York Times investigation into the wealth accumulated by Xi’s family.
Iceland’s Prime Minister Sigmundur David Gunnlaugsson and Barcelona striker Lionel Messi have also been named. Chinese media have largely avoided reporting on the leaks, and social media have been scrubbed of references to them, with foreign news broadcasters such as the BBC blacked out when they report on the issue. In an editorial on Tuesday, the
Global Times, a newspaper with close links to the ruling Communist Party, implied the leaks were part of a “disinformation” campaign by Western forces. It did not mention any of the Chinese revelations, focusing instead on the allegations involving Putin, and nor did a report by the Shanghai Daily, which is linked to the government of the commercial hub. “The documents revealed do have basic political targets”, the Global Times said, adding that “Washington has demonstrated particular influence” in previous leaks of sensitive information to the media.
Corrupt Chinese officials have moved more than $120 billion overseas, according to a 2011 report by the central People’s Bank of China.
Offshore companies are not illegal and can be used for legitimate business needs, but commonly feature in corruption cases, where they are used to secretly move illgotten gains abroad. —