Panama Boons Leak

The recent leak of 11.5 million documents from the database of Mossack Fonseca & Co., the world’s fourth largest offshore law firm, referred to as ‘Panama Papers’ has caused chaos in the realm of politics. Yet, it might not be as bad as it sounds.

These documents have records of many influential leaders and wealthy individuals who have managed to ‘keep their personal financial information secret in offshore tax havens’ away from the eyes and knowledge of their respective county’s governments. Amongst the personalities named are Pakistan’s Prime Minister, President of Ukraine, son of Egypt’s former president, six members of UK’s House of Lords and family members of China’s supreme ruling body-amongst others.

This was the earthquake. Aftershocks followed.

Mr Sigmundur Davíõ, the Prime Minister of Iceland, resigned after information about the possession of a secret offshore account worth millions of dollars by his wife emanated from the documents leaked from a Panama-based law firm. United Kingdom’s Prime Minister, David Cameron, too is under scrutiny.

Despite the pandemonium in the aftermath of the leaks, the Panama Papers have shed a new light on corruption. Earlier, African countries were consistently ranked low on the Corruption Perceptions Index; but now, it’s become clear that the aforementioned problem plagues the international community. Further, it also proves that money laundering is not limited to the government, but is an act by individuals and Multi-National Corporations as well.

Why this is beneficial to nations, in spite of the mayhem caused, is because citizens can now make an informed decision about who will lead their country- would it be a hypocrite who claims to fight what he feeds on, or an emerging body that will grow with the ruins of the earlier ruling party.

In an effort to clean up, public figures have sworn to take matters seriously and pass laws to counter their disparagement. There will be pressure for tax reform, and the same laws would be strengthened until the dent in their reputation is mended- if that is possible.