What Are Pandora Papers And How Credible Is It?

JAKARTA - The public was shocked by the secret deals and hidden assets of some of the world's richest and most powerful people revealed in a dataset. The act of leaking data is called the Pandora Papers.

The Pandora Papers are the result of an investigation by the International Consortium of Investigative Journalists or ICIJ. The investigation involved more than 600 journalists from 150 media outlets in 117 countries. The investigation is based on the leak of confidential data from 14 offshore companies that regulate shell companies in tax havens.

Thus, they can avoid the obligation to pay taxes. There are 11.9 million files from various offshore companies that have wealthy clients from various backgrounds.

The Pandora Papers also expose the confidential foreign affairs of 35 world leaders, including the affairs of incumbent presidents, former presidents, prime ministers (PM), and other heads of state. The Pandora Papers also highlight the secret finances of more than 300 other public officials, such as government ministers, judges, mayors and military generals in more than 90 countries.

In addition there are a hundred billionaire names displayed in the leaked data. There are also the names of celebrities, rock stars, and well-known businessmen. Many also use shell companies to hide luxury items, such as property and yachts.

In addition to hiding various wealth in shell companies, they also use disguised bank accounts. ICIJ reveals that in an era of authoritarianism and widespread inequality, the Pandora Papers investigation provides perspective on how money and power operate in the 21st century.

Pandora Papers (Source: Wikimedia Commons)

The rule of law has been bent and violated around the world by the systems of financial secrecy made possible by the US and other rich countries. In some cases, fraud is committed to pay little or no tax.

The findings of ICIJ and its media partners highlight just how deeply secret finance is infiltrating global politics. The findings are also cited as insight into why governments and global organizations have made little progress in ending the financial abuses of offshore companies.

In most countries, it is not illegal to own assets overseas or use shell companies to conduct business across borders. Entrepreneurs operating internationally say they need foreign companies to do their financial affairs.

But this often also involves diverting profits, from high-tax countries and where they are earned, to companies that exist only on paper in low-tax jurisdictions. Using the services of an offshore company is very controversial for political figures.

This is because offshore companies can be used to keep unpopular or even illicit political activities out of public view. ICIJ claims the Pandora Papers provide twice as much information about the ownership of offshore companies.

In all, the leaks of new documents reveal the true owners of more than 29,000 offshore companies. The owners come from more than 200 countries and regions, with the largest contingents from Russia, England, Argentina, and China.

World leader in Pandora Papers

Some of the data that had been leaked in the Pandora Papers included Jordan's King Abdullah al-Hussein, who spent US$100 million to build a global property empire. The disclosure has become particularly sensitive in Jordan, where activists have previously been arrested simply for asking how much land the king owns.

The Pandora Papers also reveal the extraordinary hidden wealth of Russian President Vladimir Putin's inner circle. Childhood friends and former lovers, were among those who were revealed to have amassed an extraordinary fortune, hidden through offshore services.

Ukrainian President Volodymyr Zelenskiy was revealed to have transferred shares in a company that was in tax havens to a friend a few weeks before his election. Then there is Moonis Elahi, Pakistan's Minister of Water Resources. He also invests in companies that are in tax havens.

Names Luhut and Airlangga Hartarto

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan (Source: Kemenkomarves Documentation)

In addition, the Pandora Papers also mentioned the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. Luhut is said to be related to a Panamanian company, namely Petrocapital SA.

According to Luhut's spokesman, Jodi Mahardi, Petrocapital SA is a company established under the laws of Panama. The company was founded in 2006 by Edgardo E. Dia and Fernando A. Gil.

One of Petrocapital SA's business fields is oil and gas, with a paid-up capital of five million US dollars. Luhut, admitted that Jodi had served in the company.

Coordinating Minister for the Economy Airlangga Hartarto (Source: Documentation of the Coordinating Ministry for the Economy)

Meanwhile, Airlangga is said to have established a shell company as an investment vehicle and to manage trust funds and insurance. Airlangga's shell companies include Buckley Development Corporation and Smart Property Holdings Limited.

Both companies are located in the British Virgin Islands, a tax-exempt jurisdiction in the Caribbean. Buckley Development is highlighted in red in the Pandora Papers. The company must complete information on the number and value of assets owned and the purpose for which the company was founded.

Based on the attachment to the electronic document dated October 2016, a Trident staff member stated that the red-labeled company had closed its stall. Airlangga refused to say he intended to disburse the insurance policy through Buckley Development and Smart Property.

Airlangga also admitted that he did not know the establishment of the two companies. "There was no such transaction," said Airlangga, in a special interview with Tempo, last August.

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