The Latest on the publication by a coalition of media outlets of an investigation into offshore financial dealings by the rich and famous and powerful.
Transparency in haven
Panama’s government is creating an international committee of experts to recommend ways to boost transparency in the Central American country’s offshore financial industry.
President Juan Carlos Varela is trying to shore up confidence in his nation’s financial industry after the leaking of 11.5 million documents from a prominent Panama-based law firm that helped create shell companies for the world’s rich and famous.
The Panamanian leader said that the committee’s findings will be shared with other nations so joint action can be taken to boost transparency in legal and financial centers worldwide.
As he takes steps to strengthen controls, Varela is defending Panama against what he calls a “media attack” by wealthy nations that he says are ignoring their own deficiencies and unfairly stigmatizing Panama.
No Happy Song
Brazil’s UOL news portal says an offshore company created by Roberto Carlos, one of the country’s most popular singers, appears in the files of the Panamanian law firm with international offices that provide offshore financial services.
The release earlier this week of the Mossack Fonseca documents on offshore financial dealings of wealthy, famous and powerful people around the world has raised questions over the widespread use of such tactics to avoid taxes and skirt financial oversight.
Blogger Fernando Rodrigues said on UOL that Carlos is one of the shareholders of Happy Song, an offshore company created in 2011 to manage his career.
Carlos’ press office told UOL that the company is duly registered with Brazilian tax authorities and the country’s Central Bank.
Fifa, again
UEFA has been raided by Swiss police and has handed over evidence of a Champions League television rights contract with an offshore marketing agency implicated in the FIFA bribery scandal.
The Swiss attorney general’s office said it requested raids on the European soccer body and “another enterprise” for suspected criminal mismanagement and misappropriation linked to dealings with Cross Trading, an offshore registered agency. Cross Trading is owned by two men indicted last year by American federal prosecutors who are working with Swiss counterparts to investigate suspected corruption in international soccer.
UEFA and its Champions League marketing agency — TEAM Marketing based in Lucerne, Switzerland — made a USD111,000 deal with Cross Trading in 2006 for three seasons of broadcasting in Ecuador. The 2006 contract, co-signed by current FIFA President Gianni Infantino when he was UEFA legal director, was leaked from the database of Panama-based law firm Mossack Fonseca.
UEFA acknowledged that Swiss federal police “acting under a warrant” came to see its contracts with Cross Trading.
My name is Bond
The Panamanian law firm at the center of the huge leak of data on offshore accounts reportedly incorporated a string of companies named after James Bond films.
The Organized Crime and Corruption Reporting Project, which says it’s one of the outlets given access to the leaked documents, says law firm Mossack Fonseca incorporated companies named Goldfinger, SkyFall, GoldenEye and Moonraker and was asked to set up a firm called Octopussy.
The OCCRP said the law firm also incorporated companies named Blofeld and Spectre, after the classic Bond villain and his organization. In addition, its report said, the files contain correspondence from a man called Austin Powers — but that apparently was his real name.
Movies: Almodovarcancels ‘Julieta’ promo
Spanish media are reporting that movie director Pedro Almodovar has canceled publicity events for his new movie “Julieta” following intense interest in the offshore company he owned with his brother years ago.
The Europa Press news agency says Almodovar canceled an appearance at a photo shoot and interviews ahead of the movie’s premiere in Madrid yesterday. It will be released to the public today in Spain.
Almodovar’s production company El Deseo asked The Associated Press to submit questions in writing and did not immediately respond to a request for comment.
“Julieta” is Almovodar’s 20th movie. Europa Press said actors in the movie, including Emma Suarez, Adriana Ugarte, Rossy de Palma, Daniel Grao, Inma Cuesta and Michelle Jenner went ahead and did interviews.
Almodovar’s brother Agustin on Monday blamed his lack of experience for a decision to set up an offshore company in the British Virgin Islands in 1991 that was shut down in 1994.
Tu, tambien, Vargas?!
A Spanish news website says a document in the massive leak of material from a Panamanian law firm shows that Nobel literature laureate Mario Vargas Llosa and his ex-wife were listed as shareholders in an offshore British Virgin Islands company for about a month in 2010.
However, a statement from Vargas Llosa’s literary agent said he was surprised to hear that the two were listed as shareholders with Talome Services Corp.
News site El Confidencial said it obtained the document from the cache of leaked material from law firm Mossack Fonseca. Its report says emails show a Vargas Llosa representative asked lawyers to remove Vargas Llosa and his ex-wife as shareholders on Oct. 6, 2010.
Vargas Llosa was awarded the Nobel prize on Oct. 7. El Confidencial says the company’s shareholders were changed from Vargas Llosa and his ex-wife to two Russians on Oct. 12.
The statement from Vargas Llosa’s agent says he and his ex-wife never interacted with Mossack Fonseca. It also says Vargas Llosa has complied with all tax regulations in Spain and elsewhere.
Malta minister feeling the heat
Malta’s health and energy minister is facing calls for his resignation after he was named in a leak of documents from a Panama-based law firm.
Konrad Mizzi, who is also deputy leader of the governing Labour Party, has acknowledged owning a company in Panama which is held by a trust in New Zealand.
However, Mizzi insists that the leaked documents make no reference to him holding any funds in Panama. He said he has commissioned an independent tax audit to prove that he’s done nothing wrong, and that the company in Panama “will be closed soon after the tax investigation is concluded.”
The opposition Nationalist Party is holding a protest to press for Mizzi’s resignation and has filed a motion of no-confidence against the government.
Prime Minister Joseph Muscat has stood by his minister, but said he will dismiss him if it emerges that what Mizzi is saying is untrue.
Ambitious Rosberg
A lawyer for Nico Rosberg says the Formula One driver used an offshore company solely for liability reasons and to enable him to operate internationally.
German public broadcaster NDR has reported that Panama-based law firm Mossack Fonseca manages a company called Ambitious Group Ltd which has a contract with Mercedes for Rosberg’s “driver services.”
Mossack Fonseca is at the center of a vast leak of confidential documents detailing the offshore business arrangements of thousands of wealthy people.
Rosberg’s German lawyer Christian Schertz says British Virgin Islands-registered Ambitious Group wasn’t used for tax avoidance.
Schertz said in a statement late Tuesday that “tax-wise, Mr. Rosberg acted correctly in every way.”
He says Rosberg, who won Sunday’s Bahrain Grand Prix, is registered in Monaco for tax purposes and receives all payments there.
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