The Pandora Papers reveal has generated a lot of attention from many Nigerians particularly because of the mention of former PDP vice presidential candidate in the person of Mr. Peter Obi.
One of the key issues raised is that he did not mention it in his asset declaration ahead of 2019 presidential election. To which he said that he did not list it because it is a jointly owned business.
A response which not surprising failed to satisfy those who have already found him guilty by mere fact that his name was mentioned.
While such reactions are to be expected in view of how many Nigerians occupying public offices have turned State Treasury into their personal bank account where they dip hands at will.
However, a good analyst or commentator should as a matter of necessity get a firm grasp of the subject in question and also understand more than one angle of judgment before drawing a conclusion.
In view of the above it is worth the effort to take a peak into what the Pandora Papers leak is all about.
What is the Pandora Papers reveal
The Pandora Papers is a leak of almost 12 million documents that reveals hidden wealth, tax avoidance and, in some cases, money laundering by some of the world’s rich and powerful.
The files expose how some of the most powerful people in the world use secret offshore companies to hide their wealth.
These offshore countries or territories are where:
- it’s easy to set up companies
- there are laws that make it difficult to identify owners of companies
- there is low or no corporation tax
The destinations are often called tax havens or secrecy jurisdictions. There is no definitive list of tax havens, but the most well known destinations include British Overseas Territories such as the Cayman Islands and the British Virgin Islands, as well as countries such as Switzerland and Singapore.
Having gained understanding of what the reveal is all about, and also seeing that the key issue is – TAX HAVEN let’s probe into it’s legality
Is it illegal to use a tax haven?
According to BBC, loopholes in the law allow people to legally avoid paying some taxes by moving their money or setting up companies in tax havens, but it is often seen as unethical. The UK government says tax avoidance “involves operating within the letter, but not the spirit, of the law”.
There are also a number of legitimate reasons people may want to hold money and assets in different countries, such as protection from criminal attacks or guarding against unstable governments.
Although having secretive offshore assets is not illegal, using a complex network of secret companies to move around money and assets is the perfect way to hide the proceeds of criminality.
What the Pandora Paper reveal says about Peter Obi
According to Premium Times Mr. Peter Obi was said to have used a Monaco-based foreign company, Acces International to incorporate an offshore entity in one of the world’s most notorious tax havens noted for providing conduits for wealthy and privileged elites to hide their wealth to avoid the attention of tax authorities.
The report says that he allegedly paid Acces International to provide nominee directors for his company, Gabriella Investments Limited.
Gabriella Investment Limited was born on November 17, 2010, with registration number 1615538 while two figureheads – Antony Janse Van Vuuren and Lance Lawson — were appointed its first directors while ultimate control resided with Obi.
The Crux of the Matter
As a people let’s not lose sight of what our major problem as a nation is, our biggest problem is the continued pilferage of our collective wealth by public office holders not necessarily tax avoidance through offshore investment.
As a matter of urgency, our collective focus should be to trace those illegally acquired wealth wherever they are hidden within or outside the country.
We must remind ourselves of the kind of man Mr. Peter Obi is; The soft-spoken former executive Governor of Anambra State, saved $156 million dollars in compound interest cadre for the State before he left office. This was when dollar exchanged for N150.00 each, today same dollar is approaching N600.00 each!
If he did that to secure the future of the state as the chief executive, it wouldn’t be out of place for him to have demonstrated the same foresight in safeguarding his own fortunes outside our volatile local currency.
The smoking gun would have been a trace that the fund invested in the offshore business was a proceed of corruption, if that cannot be established, then the matter is dead on arrival.
by: Samuel Oruruo
Head of AfricanQuarters Editorial
