The Panama Papers

By Daniel Margrain

The handing over by an anonymous source of massive amounts of data from the Panama-based, German-run law firm Mossack Fonseca which specializes in providing clients with dodgy offshore accounts, had clearly contributed to some unease within the camp of British Prime Minister, David Cameron. Rarely, if ever, do corporate journalists give Cameron a hard time and this was no exception. Having just returned from one of many in a long line of luxury holiday’s on the back of the impending collapse of the UK steel industry, a car crash shambles of a budget, divisions within his own party over Europe and with government policy over schools and health in meltdown, Cameron angrily snapped at reporters in response to feeble attempts to bring him to account regarding the extent to which his father allegedly attempted to shield his wealth from the UK tax authorities.

Cameron was clearly in no mood for such media games especially as both he, the media elite and the Westminster political hierarchy in general, know that due to the specific nature of the leak, much of the potentially incendiary material will never see the light of day within the public domain. It’s disgraceful that Cameron and some Tory ministers are using the ‘privacy prerogative’ to hide behind the morally repugnant and possible criminal activities associated with Cameron’s father which means that the PM is also potentially complicit.

The reason why leaked material that’s likely to be detrimental to the powers that be is hidden from the public on so called privacy grounds can be explained by the fact that the said material is being managed by the International Consortium of Investigative Journalists (ICIJ) who in turn are supported by some of America’s biggest corporate funders. I’m not reassured by the ICIJ when they said they’ll be releasing the full list of people and companies in early May. In any case, the true nature of the revelations won’t be revealed as to who was acting legally and who wasn’t.

Had the leaker approached Wikileaks with the 2.6 terabytes of data consisting of 11.5 millions documents, rather than Suddeutsche Zeitung – and by extension, the Western media more widely – the impact and potential consequences for those concerned would of been far greater. Instead, the largest data leak that journalists have ever worked with will be selectively ‘drip-fed’ with most of the significant amounts implicating Western elites being censored from the public gaze.

We have already seen signs of this with Luke Harding’s Guardian piece published Monday (April 4) which, predictably, focused on Russian individuals and companies whose wealth represents a minority of the money stashed away. Harding’s seriously compromised piece failed to mention that 9,670 UK Companies and over 3,000 US Companies, as well as Cameron’s father, top Tories and some of the UK’s biggest allies, were implicated and/or named in the Panama Papers.

Did the corporate media vilify David Cameron for some serious high-ranking connections to this mother of all leaks? No, it did not. Did the same media publish any damning report that featured Cameron airbrushed alongside global ‘baddies,’ like former Iranian leader Ahmadinejad? No. But it seems as far as Putin and Russia is concerned, anything the media dishes out is regarded by the elites as fair game.

Arguably, the most important graph in the Panama Papers scandal is highlighted below. It shows the number of intermediaries (banks, accountants) in each country.

 

There is no mention of these by the media or of the numerous huge Western multinational corporations or billionaires, some of whom sit in the House of Lords. Neither does Harding mention by name any of the 12 leaders, past and present, identified in the documents. Instead, the Guardian journalist, in line with the methodological approach adopted by Suddeutsche Zeitung which received the leak, selectively focused on the West’s official enemies – Russia, Syria and North Korea.

Despite the fact that Putin wasn’t personally mentioned in the Panama Papers, I’m in no doubt whatsoever that since he uses Russia as a personal fiefdom, he should not be exonerated. It’s one thing ridding the country of the oligarch’s who were responsible for asset stripping its resources which subsequently turned Russia into a gangster capitalist paradise, but another to pocket a large chunk yourself by getting shot of the competition which is effectively what Putin has done. Putin’s primary interest is Putin himself.

But what the Panama papers reveal is that he’s not alone. The global web of corruption and tax avoidance extends to 72 states, heads or former heads of state. Yet you would be unlikely to have reached this conclusion having read the Guardian article or observed the cover of the paper which sensationally headlined with the words “Exclusive: The Secret $2bn trail of deals that lead all the way to Putin”. Neither would you have reached the conclusion having watched the UK state broadcaster, the BBC, who chose to mention just five of the 72 – Egypt, Iceland, Gaddafi, Putin and Assad.

Central to all this is the pathetic kow-towing to power by our media that’s supposed to be impartial and independent yet they act reflexively en masse by directing their fire at enemies of the state. If you don’t believe me, just look how often Putin has been foregrounded in the coverage of these leaked documents, complete with the requisite ‘shady’ photographs. Naturally, the media cannot be perceived to be so transparently biased which is why the occasional ‘balanced’ message is required. Step forward the Telegraph.

On Monday April 4, the paper dutifully reported:

David Cameron’s father ran an offshore fund which avoided paying tax in Britain by hiring Bahamas residents, including a bishop, to sign paperwork…The fund, which was established in the 1980s with help from the Prime Minister’s late father, continues today. The Guardian says it has confirmed that ‘in 30 years Blairmore has never paid a penny of tax in the UK on its profits.”

Nevertheless, the targeting of a dead man is virtually risk free as will be the ‘outing’ of a senile corrupt Lord to be cynically used a sacrificial lamb for the media hacks to peruse over if and when the time is right. Ultimately, the UK Secret Services will never allow the media to publish anything that is likely to damage the ‘reputations’ of leading establishment figures. The destruction of the Snowden files that the Guardian had in its possession but were requested to destroy by M15, are proof of that.

I had been watching the UK media all day on Monday after the story had broken, and news bulletins prefaced the scandal with either Putin, Cameron’s deceased father or Assad. It’s mainly the first two which are easy and convenient targets intended to deflect away from the crimes that implicate ‘our’ leaders. Almost certainly then, there is a highly motivated political agenda at work here that probably explains why Iceland, who locked up many of its corrupt and criminal bankers, was also named.

Following the revelations that Iceland’s PM was implicated in the scandal, the people of Reykjavik took to the streets in their thousands. At the time of writing, I watched the BBC News at Ten which reported from outside the Icelandic parliament. Following the resignation of the PM, the BBC reporter interviewed some Icelander’s. What the people on the streets of the country are increasingly aware of is that corruption within the corridors of power in Iceland and elsewhere is systemic.

The elites on both sides of the Atlantic are concerned about the effect the revealing of undoubted widespread and systematic corruption within the high echelons of media and politics will have on the body politic of Europe and North America. They don’t want Reykjavik to spread to London, Paris and Washington. This is another reason why the full scale nature of those implicated will never be revealed.

What all this highlights is the public is being cynically deceived by the corporate media in order to get their fellow elites off the hook. Craig Murray’s brilliant expose of the BBC Panorama documentary entitled Tax Havens of the Rich and Powerful Exposed, highlights the extent to which BBC producers and presenters will go to in order to misdirect its audience to this end. Perhaps less subtle than the overt propaganda pieceSaving Syria’s Children, but no less effective, the BBC related at length the stories of the money laundering companies of the Icelandic PM and Putin’s alleged cellist. As Murray said:

“The impression was definitely given and reinforced that these companies were in Panama. [Presenter] Richard Bilton deliberately suppressed the information that all the companies involved were in fact not Panamanian but in the corrupt British colony of the British Virgin Islands. At no stage did Bilton even mention the British Virgin Islands.”

Murray goes on to say:

“Is it not truly, truly, astonishing the British Virgin Islands were not even mentioned when the BBC broadcast their “investigation” of these documents?”

Indeed, Mr Murray, it is.

The BBC and media in general are obscuring the key role British money-laundering via its base in the British Virgin Islands plays in these transactions. This scandal must also be seen within a context in which between £30bn and £120bn a year of UK tax is either avoided, evaded or uncollected (sources (Tax justice/ PCS estimate & HMRC estimates). Meanwhile, £16bn worth of benefits a year remain unclaimed (HMRC estimate) against a backdrop in which benefit fraud amounts to a relatively tiny £1.2bn (DWP estimate).

Which of the above figures do you think the government and their media mouthpieces constantly highlight?

It can never be stated enough that this corruption scandal is mostly centred on the British Virgin Islands. Yes, the corruption is widespread and involves a number of world leaders, some of whom are our official enemies. However, in the broader scheme of things, these political figures are essentially peripheral. The level of corruption is widespread and systemic. As far as the major players are concerned, the media need to focus closer to home.

9 thoughts on “The Panama Papers

  1. As telling is the House of Commons votes against a public enquiry into the Panama Papers only last week. I do think there should pressure to correct this.

    Liked by 1 person

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