Columnist Anna Ayers argues that with billions of dollars funneled into tax havens, the lost funds can’t be used to help those in need.
In September 2015, a conglomerate of journalists from around the world met in Munich, Germany, to secure data that would prove to uncover the biggest leak since Edward Snowden and the most abrupt uncovering of financial transgressions since Bernie Madoff. Eight months later, the “Panama Papers” were released and most people were shocked by the level of secrecy resorted to by some of the world’s most prominent figures to cover up large amounts of money.
The papers were leaked by a still unknown source at the Panama-based law firm Mossack Fonseca, which created offshore companies and accounts for government officials, businessmen from around the world and several renowned athletes and celebrities. According to the International Consortium of Investigative Journalists, the files reveal the offshore holdings of 140 politicians and public officials from around the world.
Within days of the reports, several world leaders found themselves out of a job, including most notably the Icelandic prime minister. And then, as often happens in today’s non-stop news world, the average world citizen moved on. Tax forms needed to be hastily filed; plans for summer vacations had to be made; the U-12 baseball league was starting up again; and soon the millions of people who do not use offshore accounts as tax havens went back to their lives. Only this is a problem we can’t forget because it simply involves too much money to not hold those involved responsible.
Offshore agencies like Mossack Fonseca rarely maintain specific knowledge about their customers. The information often held by these firms is kept so secret that it is mostly no even kept by the firms at all. Does that not make it clear that this secret information is reputation-damning at best and much more likely extremely criminal? It’s like playing a game of “telephone” with your deepest secret. By the time it reaches the final source, no one can truly be sure they know your secret but they were at one point told it.
Every day we turn on the news to hear about another natural disaster, acts of terrorism or nuclear weapon confirmations in countries like North Korea. Countries cannot recover from what Mother Nature throws at them without money. Terrorist organizations and militaristically focused countries cannot operate without money. The ICIJ reported that the Panama Papers uncovered accounts connected to at least 33 people and companies blacklisted by the U.S. government because of evidence that they’d been involved in wrongdoings, such as doing business with Mexican drug lords, terrorist organizations like Hezbollah or rogue nations like North Korea and Iran.
On Sunday a massive earthquake struck Ecuador, and it has been reported that more than 230 people are dead with thousands injured. In places along fault lines there is no “earthquake season,” instead the threat of earthquakes looms for the entire year. It will take years to rebuild and heal from this single disaster and it’s more than likely more will come. It will take a great deal of money to fund the relief and rebuilding efforts.
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And that is why the Panama Papers matter so much to the world and should to you. Whether or not you agree with government taxing systems, by hiding their wealth leaders, businessmen and other prominent figures from around the world take money away from funds that can be used to help those like the people of Ecuador. We cannot stop earthquakes, but we can certainly hold white-collar criminals responsible, if we keep caring.
Anna Ayers is a freshman studying journalism and finance. What's the most recent coverage you've seen about the Panama Papers? Email her at aa183414@ohio.edu.
