Kirby named in massive leak of offshore accounts #panamapapers

Correspondent | Monday April 4, 2016 09:25

 

Eleven million documents were leaked from one of the world's most secretive companies, Panamanian law firm Mossack Fonseca. The confidential documents have revealed how the rich and powerful use tax havens to hide their wealth.

They show how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax.

Kirby, who is also the former Attorney General is named as, 'one of many shareholders in offshore companies, some of which owned UK real estate'

The report, which has been published by global media houses, says, 'Kirby was one of dozens of shareholders of seven British Virgin Islands companies. He first appeared in documents sent to Mossack Fonseca as a shareholder of Bellbrook Estates Limited in May 2005, while Kirby was attorney general of Botswana. Bellbrook Estates Limited carried out unspecified activities in the United Kingdom, according to a 2014 list by Mossack Fonseca of active companies for which it served as registered agent. Although specific details of the offshore companies in which Kirby held shares are not available, at least three of those BVI firms held properties, including commercial real estate, in the United Kingdom.'

ICIJ quotes Kirby in a response saying the companies were special purpose vehicles formed by a joint venture to acquire, develop and resell a particular property in the UK, as an investment. He said that he and his wife were persuaded to invest a portion of their savings in the companies in hopes of receiving a return on investment that would keep them ahead of inflation, investing the minimum allowed.

'One or two have worked out, but most not, because the worldwide recession intervened. Overall we have lost most of our investment,' he said. He said that they retain an interest in only two of the companies, one of which they hope will allow them to recover their investment and the other of which they hope may provide a modest profit.

Kirby is the only Motswana named in the leaked documents. The documents show links to 72 current or former heads of state in the data, including the Icelandic Prime Minister, Sigmundur Gunnlaugson, who had an undeclared interest linked to his wife's wealth and is now facing calls for his resignation.

The files also reveal a suspected billion-dollar money laundering ring involving close associates of President Putin.

Gerard Ryle, director of the ICIJ, said the documents covered the day-to-day business at Mossack Fonseca over the past 40 years.

'I think the leak will prove to be probably the biggest blow the offshore world has ever taken because of the extent of the documents,' he said.

ICIJ has however mentioned that there are legitimate uses for offshore companies, foundations and trusts.

The statement on the website says, 'We do not intend to suggest or imply that any persons, companies or other entities included in the ICIJ Power Players interactive application have broken the law or otherwise acted improperly.'