IMF must set clear policies

The joint investigation by the International Consortium of Investigative Journalists (ICIJ) and German newspaper Süddeutsche Zeitung lead to reveal 11.5 million secret documents from Panama-based law firm Mossack Fonseca — and that is definitely beyond our imagination.

The leak brought about large-scale tax avoidance and hiding of huge incomes in shell companies abroad, all earned through graft and political power and looting the government. More than 500 banks have credited 15,000 offshore companies through Mossack Fonseca and several politicians and their families have been linked to this money laundering scandal. Top politicians, leaders, film personalities and businessmen from various countries were named in the Panama episode. We have also seen Iceland’s Prime Minister Sigmunder David Gunlaugsson leave his chair after being shamed in the documents. More names are being released on a daily basis and we do not know who’s next in line to step down.

The money invested by political leaders are normally a kickback from government projects and if such leaders are listed, they should have the courtesy to resign from their post and bear the consequences of their actions.

Though Panama is a tax haven country, it is a controlled satellite country of US. Countries like US, France and UK have similar territories created as tax havens and most money from third world countries are diverted to such accounts.

While the ‘Panama Papers’ leak are just the tip of an iceberg, I definitely think that there are a lot of medium-sized companies who have offshore accounts from third world countries that remain unnoticed in different parts of the world. It is just a matter of time before they get exposed too.

It is high time that the International Monetary Fund (IMF) and the World Bank comes up with a strategy to control these offshore companies and third world countries should make sure that their money is not drifted away into these “secret” pockets. Scandals and corruption have become commonplace in today’s society. However, transparency and accountability towards each country is a must, otherwise looting of our own countries’ wealth will also become commonplace, and we cannot risk that.

— The reader is an Indian logistics manager based in Dubai