The family of Prime Minister Nawaz Sharif was among the dozens implicated in a massive leak of secret files from a Panamanian law firm that specializes in offshore tax havens (Dawn). According to documents available on the website of the International Consortium of Investigative Journalists -- one of the approximately 100 news organizations that worked on mining the data – Nawaz’s children Mariam, Hasan, and Hussain “were owners or had the right to authorize transactions for several companies.” The Panama Papers -- one of the biggest leaks in history according to the Guardian -- are not necessarily evidence of wrongdoing.
Responding to the allegations of tax evasion on Monday, Prime Minister Nawaz Sharif's son, Hussain Nawaz Sharif, told television channel Geo that his family had done "nothing wrong" as they defended their ownership of offshore companies. "It is according to British law and laws of other countries that it is a legal way to avoid unnecessary tax via offshore companies,” Hussain said, referencing the London real estate owned by him and his brother Hasan. He left Pakistan in 1992 and is therefore not resident, Hussain said, adding that Pakistani tax law "says that if you are not staying in Pakistan for more than 138 days, then you are not required to declare your assets.”
Floods kill 45 in northwest Pakistan
Flash flooding in Khyber Pakhtunkhwa province killed at least 45 people on Sunday and injured 34, according to officials (NYT). Residents of villages close to rivers in the province were given warnings to vacate and leave for safer places, said a Pakistani national disaster management official, Latif ur Rehman. Pre-monsoon rains like the downpour that triggered the floods frequently cause damage in Pakistan, particularly in rural villages with minimal infrastructure.
Süddeutsche Zeitung explains how the leak happened, and the Guardian offers a guide to the findings -- including revelations about scandalous links to Russian President Vladimir Putin. The Associated Press reports on documents that implicate Ukrainian President Petro Poroshenko.
Mossack Fonseca is known for its services in setting up shell companies for wealthy individuals who want to evade taxes or international sanctions. Its clientele includes family members and associates of former Egyptian dictator Hosni Mubarak, Libya’s Muammar al-Qaddafi, and Syria’s Bashar al-Assad.