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Panama Leaks is the new bombshell that has hit the global scene. Like its predecessor, Wikileaks, it has laid bare the names and accounts of many world leaders, businessmen and other notables. It is trending on the social media where comments and barbs are aplenty. Pakistani rulers and elite have also come under the radar of Panama Leaks. Naturally, Pakistani political leaders, whom everyone criticizes for stashing their wealth overseas, are also facing the ignominy of being named in these files.
Panama Leaks has given details about certain real estate assets of the three children of the Prime Minister. Shell companies own the real estate and these shell companies are individually and collectively the property of Maryam, Hasan, and Hussain Sharif. The latter, based in London, manages the properties, while Maryam, tipped and groomed as successor to her father, rules the roost at the Prime Minister House. Hasan is relatively unknown as he is not active in the political scene and is probably looking after the Sharif assets in Pakistan.
The Prime Minsiter in his addressed to the nation defended his family's business practices, denying any wrongdoing and calling corruption claims old accusations repeated over and over again.
He also set up a commission to investigate allegations that offshore companies headed by members of his family were avoiding paying taxes or disguising assets and their origins.
"I say that those who are repeating tired accusations should go before this commission and prove their accusations," the Prime Minister said.
Prime Minister Sharif’’s family also said the leaked files contained nothing new and made no allegations of wrongdoing.
“No new information has been disclosed by the Panama leaks and ICIJ which was not already in public domain,” said the statement attributed to a Sharif family spokesman. “It is regretful that some elements in media and political rivals are disseminating factually wrong information and distorting it for political purposes.”
All of the corporations owned by the Sharif family are “legal and financially sound,” according to the statement, which was sent to media via Whatsapp by spokesman Khawaja Maaz. None of the companies mentioned are owned or run by the prime minister, it said.
Panama Leaks has naturally created a tempest in Islamabad and, as expected, the Information Minister has sounded the trumpet and, as expected, tried to divert the issue by focusing on the children of Imran Khan, the Chairman of Pakistan Tehrik-e-Insaf. The PML (N) Parliamentarians are, as expected, shuffling at the sidelines, unsure whether to defend their leader or play it cool. Pakistan People's Party leadership is busy observing the death anniversary of their leader Z A Bhutto, and, as expected, they too will maintain a discreet silence.
Panama Leaks has not disclosed any offshore property that is in the name of Prime Minister Nawaz Sharif. The children are the owners, not him nor his spouse. So, how did the children get hold of formidable resources to finance their real estate purchases? There has to be some logical explanation, or at least imperative if spin doctoring is undertaken to minimize the negative impact of the disclosures. It is important to take into account the culture and traditions of the Pakistanis.
The children are given cash gifts at times of the Eid festival. Parents, relatives and friends of the family usually hand over money to the children. If the children are scions of influential families, then there is always the probability that well-wishers and those who want to be on the good side of these powerful personalities would present a heavy packet full of high value currency notes. Moreover, at weddings, these children get packets galore filled with large sums. At the same time, these children are beneficiaries of cash gifts whenever those who want to curry favors enter the portals of the high and mighty.
Panama Leaks does not openly reveal the source of funds. Thus, there is no mention of the banking trail, as yet. In the case of the children of people in authority, as is the old tradition, these cash gifts are never recorded in the Income Tax returns nor do those who give the gifts include these as expenses in their returns. Hence, these gift-transactions are off-books, so to speak. Now, what to do with all this money? Instead of frittering away on non-essentials or dabbling at the stock exchanges or investing in property, as well as the fear that one may have to live long years in exile, the children deem it proper and prudent to invest outside the country. There is no bar or hindrance in doing so. The money is already unaccounted for in their wealth statements.
Panama Leaks has disclosed the names of many world leaders who have offshore accounts. It is no rocket science to get hold of a financial advisor who knows the ropes and procedures of opening offshore accounts. Since one sibling was already settled in London, the task became much easier and smoother to appoint a law firm with decades of experience in managing offshore accounts and ensuring confidentiality. The clouds started bursting violently when the secret files of clients became public knowledge for whatever reason.
Panama Leaks may have created a furor worldwide and there may be many red-faced resignations in the corridors of power around the globe. In Pakistan, it may turn out to be a storm in a teacup. The media may be coerced into downplaying the incriminating details, the Parliamentarians may protect each other's back, the other pillars of government may let the issue subside, and the social media will move on to another scandal or another campaign.
Meantime, the children will smugly rest in comfort, knowing very well that their assets are safe, these will continue to increase in value, and these will enable them to obtain and transfer their cash gifts and benefits to another bank account through another lawyer. Their future needs are secured and out of harm's way. Why worry when minions are there to spin-doctor their shenanigans and financial chicanery? All's well that ends well.
The writer is a young entrepreneur