The Iceland PM has been accused that he hides millions of dollars that belong to his country in a secretive offshore company.
Documents that were leaked have indicated that Sigmundur and his wife purchased and offshore company refered to as Wintris in 2007.
When he was entering into parliament in 2009, he did not declare that he has an interest in the company. Eight months later, he sold 50% of Wintris to his wife at a cost of $1 (70p).
The PM has said that he did not break any rules and that his wife did not get any financial benefit.
The document that Anna Sigurlaug, Sigmundur’s wife, signed in 2015 has shown that the company was used to invest inherited money worth millions of dollars.
Exposed Panama Papers
- 11 million documents held by Mossack Fonseca, law firm in Panama, have been given to German newspaper Suddeutsche Zeitung, which then shared them with the International Consortium of Investigative Journalists. The Guardian and BBC Panorama are among the 107 media organizations that have analyzed the documents in 78 countries.
- They indicate that the company has been instrumental in assisting clients dodge sanctions, launder money and evade tax.
- Mossack Fonseca says that its method of operation for the past 40 years has been an open one, void of charges to do with criminal wrong-doing.
The leaked documents indicate that Sigmundur and his wife were granted the power of attorney that gives each one of them to operate “without any limitation.”
Court records show that Wintris had significant investments in the bonds of three major Icelandic banks that collapsed during the financial crisis which began in 2008. Wintris is listed as a creditor with millions of dollars in claims in the banks’ bankruptcies.
PM Sigmundur ascended to power in 2013 and has taken part in numerous negotiations regarding the banks that can affect the bond value that Wintris holds.
He did not bend to pressure from foreign creditors – UK customers included – to make full repayment of the deposits.
The spokesman said Ms Palsdottir had always declared the assets to the tax authorities and that under the parliamentary rules Mr Gunnlaugsson did not have to declare an interest in Wintris.
The revelations are bound to spark hundreds of questions in Iceland as the leaked documents indicate that other two ministers in government failed to disclose their offshore investments.