This is the Panama Papers, named after Panamanian-based law firm Mossack Fonseca and their leaked documents, revealing a long list of clients. They've pretty much helped mafia guys, athletes, celebrities, presidents, politicians and businessmen hide money in offshore bank accounts in order to evade taxes or depositing money and making it "disappear". They do disclose that not everything in the document-leak is necessarily illegal but that many of these accounts, in the best of cases, are in clear conflict of interests and corruption.
"The leaked data covers nearly 40 years, from 1977 through the end of 2015. It allows a never-before-seen view inside the offshore world providing a day-to-day, decade-by-decade look at how dark money flows through the global financial system, breeding crime and stripping national treasuries of tax revenues.
Most of the services the offshore industry provides are legal if used by the law abiding. But the documents show that banks, law firms and other offshore players have often failed to follow legal requirements that they make sure their clients are not involved in criminal enterprises, tax dodging or political corruption. In some instances, the files show, offshore middlemen have protected themselves and their clients by concealing suspect transactions or manipulating official records.", says the ICIJ website.
There were of course some people that wondered if there were any Mexican nationals or companies mentioned as being clients of the Panamanian law firm. There are at least 45 names in the long list that correspond to Mexico, among them are Juan Armando Hinojosa, owner of the now infamous Grupo Higa, which has been one of the most benefited contractors in the Enrique Peña Nieto administration, during his tenure as State of Mexico governor, as well as the current Federal government.
These are friends, relatives or associates of world leaders that form part of Mossack Fonseca client base and hold multiple secret offshore accounts, this according to the ICIJ.
This is what they say about Juan Armando Hinojosa:
"Juan Armando Hinojosa, who has been called Mexican President Enrique Peña Nieto's "favorite contractor," runs a well-connected business empire that secured at least $750 million in business with government agencies. Controversy broke out when it was revealed in late 2014 that first lady and former soap opera star Angélica Rivera was in the process of buying a $7 million mansion for the presidential family that was built by one of Hinojosa's companies and registered under the name of the firm. Reacting to criticism, Rivera disclosed she secured a $4 million, eight-year loan from one of Hinojosa's companies and made 30 percent down payment in January 2012, using her own money, almost a year before her husband became president. In her response, she made a commitment to sell the house. But in August 2015, a government spokesman said Rivera would wait for an inquiry on a possible conflict of interest to wrap up before proceeding with the sale. That same month the Secretariat of Public Function said that there was no conflict of interest in the purchase of the house and exonerated Peña Nieto.
Inside the Mossack Fonseca data
After controversy, a complex offshore network was created to hold about $100 million
Throughout the summer and fall of 2015, not long after the controversy over the Casa Blanca, Mossack Fonseca helped Hinojosa create three trusts to take over accounts worth approximately $100 million previously held in banks. Hinojosa was the primary beneficiary of the trusts, nominally controlled by his mother and mother-in-law. His wife and children were named beneficiaries in the event of his death . His network was complex, with nine entities set up in three different jurisdictions New Zealand, the United Kingdom and the Netherlands."
Currently, the headlines and national spotlight in Mexico have focused on Hinojosa's business ties with president Enrique Peña Nieto and his wife. He moved quickly in order to hide most of his fortune in offshore accounts and putting his mother, Dora Patricia Cantú Moreno, and his mother-in-law, María Teresa Cubria Cavazos, as straw men.
If you need a memory refresher regarding everything Hinojosa has done for his good friend Peña Nieto, as well as his friends, family and government administrations, Aristegui Noticias – which along with Mexican magazine Proceso and other media outlets form part of a group of journalists who organized and published the Panama Papers-, have a pretty detailed recount of their tight relationship, in the form of an easily digestible 8-minute-long video.
VIDEO: Carmen Aristegui showcases the Panama Papers to Mexico
Of course, they aren't the only Mexican nationals involved in this scandal, nor the only ones linked to the Mexican president or his administration. There are multiple Mexican companies and individuals registered as Mossack Fonseca clients. We reiterate, this doesn't necessarily mean they're involved in illicit activities. But a vast majority of their clients are people who have been accused of multiple crimes, from tax evasion to kidnappings, human trafficking, corruption or drug trafficking. Some politicians will probably have to resign their post (like Iceland's prime minister), simply for the fact that he has offshore accounts and didn't make it public.
Basically, where there's smoke, there's fire. And apparently today the world woke up to a really big one, including people like Lionel Messi, Vladimir Putin, Argentina's president and international institutions like FIFA.
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Translated by: edgar.martinez@sandiegored.com
