PANAMA PAPERS: Investigation opens into ex-government advisor

PANAMA’S  PUBLIC MINISTRY (MP)  is  opening  a second investigation  of  the Panama law firm Mossack Fonseca after the  worldwide publication of the release of over 11million files relating to the secretive world of offshore banking and tax avoidance.

The government of President Juan Carlos Varela which until a few weeks ago had Ramon Fonseca Mora  a co-founder  of the firm as a top  advisor to Varela,   has pledged to cooperate.

As the revelations made the world headlines and  Panama became  the lead news item on every  major TV and radio outlet   on Sunday April 3, Sandra Sotillo  MP spokeswoman, rushed to  declare that Attorney General Kenia Porcell  has announced it will investigate the firm’s activities because of publications in international media.

It will  be the second file opened  by the  MP so far this year. The first was in  January, when Porcell announced an investigation into  accusations of Brazilian authorities against the Panamanian firm and its alleged involvement in laundering scheme disovered  in the  Lava Jato (Car Wash) bribery scandal.

In late January, the Brazilian Attorney Carlos Fernando Lima dos Santos said he had “evidence” that Mossack Fonseca wa sa “big money laundering machine” that was under  investigation  for other corruption schemes in Brazil..

The  Brazilian justice warned that there were “indications of the existence of a real criminal organization, designed to wash securities received by way of bribes, through real estate transactions and offshore companies” many constituted by Mossack Fonseca.

Panama’s Public Ministry  has not revealed any progress in the investigation, although it led to the stepping aside of the Varela advisor.

Now the Government of Panama says  it is willing to cooperate in any investigation, national or international arising from  the activities of Mossack Fonseca.

COSTA RICA REACTION
Meanwhile, in Costa Rica, the government , promised that  reforms will boost its tax system to avoid similar situations.

T he Costa Rican Ministry of Finance said that   it will  “initiate the necessary investigations of persons, companies and law firms that have been mentioned in the leaked report and  will also start tax audits to ensure payment of taxes that apply and that have not been declared and paid in due time. “

Ramon Fonseca  Mora, former advisor to Panama’s president, said In an interview with TVN:”It is a totally false accusation. We are linking with end customers, and they are not our customers  but are clients of intermediaries [to which the firm sells its companies]. We are dedicated to forming tools, end vehicles, and selling them l. Other people use them. We are not responsible for how they use them. ” Mossack Fonseca co- founded by German-born lawyer Jürgen Mossack and Fonseca  is a multinational dedicated to the sale of companies. “We are very successful selling corporations in the whole world”. Fonseca Mora, who is on leave from th e  office of minister counselor of the current administration, said the government does not have to be affected by these publications because “I already gave up [as minister counselor]. I have nothing to do with the government … resigned to defend my industry … 99.99% of the companies we sell are legitimate and do not get into trouble. But with the huge number of companies that we sell, some have to get into trouble, that’s normal.