Icelandic Prime Minister Sigmundur David Gunnlaugsson announced his resignation on April 5 after leaked documents revealed that he and his wife had established a company in the British Virgin Islands that had large claims on the country's banks, creating a conflict of interest for the public official.
The documents, which are now known as the Panama Papers, revealed substantial information about the assets of more than 200,000 companies and 14,000 clients of a Panamanian law firm known as Mossack Fonseca.
Based on the leaked documents, Gunnlaugsson failed to disclose his involvement in a company known as Wintris Inc., which his wife had bought in 2007 using money she gained from the sale of her family's business.
Gunnlaugsson did not declare his interest in the company to authorities when he became a member of Iceland's parliament in 2009, as well as when he assumed the office of prime minister in 2013.
The prime minister's office said that this was an oversight because Gunnlaugsson and his wife owned a joint bank account. However, this excuse was unacceptable to many of the country's citizens, who took to the streets in protest.
With Gunnlaugsson's resignation, his deputy prime minister, Sigurdur Ingi Johannsson, is set to assume leadership of both Iceland's government and the Progressive Party.
Panama Papers
Many of Mossack Fonseca's clients involved in the leaked documents are high-ranking officials in several international governments, causing people from their respective countries to call for criminal investigations and the outright resignation of all those involved in the controversy.
In the United Kingdom, people have called on the government of Prime Minister David Cameron to launch an inquiry on what they consider bald hypocrisy among officials, who have been pushing for financial transparency for years.
The Panama Papers showed that Cameron's family has maintained undisclosed wealth in several tax havens overseas.
Pakistani Prime Minister Nawaz Sharif refused demands to step down from his office made by members of the opposition. He pointed out that he legally acquired his wealth and that his opponents should present evidence to back up their claims of any wrongdoing on his part.
Sharif's daughter has also issued a challenge to their critics through Twitter to "prove or apologize."
Chinese President Xi Jinping's brother-in-law was also one of those named in the leaked documents. However, the government has dismissed the accusations as a groundless attack and has ordered media censors to block any Internet search in the country regarding Panama.
In Russia, government officials have denounced the Panama Papers, calling it a baseless attack designed to discredit President Vladimir Putin. The country's prosecutor general's office, however, said that it will launch an investigation regarding the possible involvement of prominent Russians in the illegal activities of offshore companies.
Meanwhile, the government of Panama said on Tuesday that it is ready to defend the reputation of the country.
Alvaro Aleman, chief of staff of President Juan Carlos Varela, told reporters that the government could retaliate following France's announcement that it plans to place Panama on its blacklist of known havens for tax evaders.
Aleman asserted that no company in the county has been proven of any wrongdoing with regard to the Panama Papers.
Photo: Control Arms | Flickr
