Pakistan’s ‘Quaker Oats Man’

[Dubious]

Reminiscing about my childhood, the image of the Quaker Oats tin box is indelibly etched in my mind. Featuring the “Quaker Man” logo, the picture of the white haired distinguished looking man, in a swish black coat, white cravat and a black hat, brimming with good health conveyed good breeding. The company states, “The ‘Quaker man’ does not represent an actual person. His image is that of a man dressed in the Quaker garb, chosen because the Quaker faith projected the values of honesty, integrity, purity and strength.” (Website for Quaker Oats Company FAQ January 22, 2009)

For heaven’s sake guys, when a cereal company deems it important to link the product with good ethics and good values linking up with purity and goodness of product- should not leaders of a nation in reality have honesty, integrity, purity and strength? (As in strength of character) If yes, what on earth is Panama Leaks about (Being bandied around crudely as Pajama Leaks).

The 11.5 million documents obtained originally by German newspaper Süddeutsche Zeitung have undergone investigation that has been led by International Consortium of Investigative Journalists (ICIJ). It details 214,000 offshore entities, and as per a report, “Offshore accounts aren’t illegal but are often used as tax havens for money laundering and corruption. Many of these entities were reportedly found to be shell companies established in order to help several of the law firm’s clients, through more than 500 top banks worldwide, allegedly hide income and transactions worth billions of dollars….”

Pakistan’s sitting Prime Minister’s three off springs; Hasan Nawaz, Hussain Nawaz and Mariam Nawaz are listed, as are relatives of Chief Minister Punjab’s relatives, also some senior judges, politicians and media moguls have been named in the list.

The spotlight has fallen on the Prime Minister who was forced to address the nation on TV. Worse followed with the latest bombshell by a local newspaper quoting WB website claiming,” Prime Minister Nawaz Sharif as the owner of two secret offshore companies. It disclosed that Hussain Nawaz, son of Nawaz Sharif transferred 1.9 million dollars to his father. According to the website Prime Minister Nawaz Sharif was the owner of two off shore companies Shamrock and Chendron Jersy. There were some accounts associated with 12 off shore companies.” (April 10, 2016)

Panama Leaks is claiming skulls. Sigmundur Davíð Gunnlaugsson, Israel’s Prime Minister who” handed over his office to Sigurður Ingi Jóhannsson, the agriculture and fisheries minister for “unspecified time” following revelations that Gunnlaugsson once owned – and his wife still owns – an offshore investment company with multimillion-pound claims on Iceland’s failed banks,” (The Guardian, April 5, 2016) People have taken to streets demanding Cameron’s resignation.

The papers are not necessarily evidence of wrongdoing. According to The Guardian, using offshore structures is legal. “There are many legitimate reasons for doing so. Business people in countries such as Russia and Ukraine typically put their assets offshore to defend them from `raids’ by criminals, and to get around hard currency restrictions.” (The Dawn, April 4, 2016)

Can the paper trail be traced to ascertain the core question of where the money is flowing from? It certainly brings the morality of the transaction (s) in question. Business Insider writes, “While anonymous company structures hidden in offshore holdings are not illegal, the leaks reveal the extent to which many high-level political figures have relied on shell companies to conceal their wealth, launder money, or evade taxes. A memorandum from a Mossack Fonseca partner contained in the leak reads, “Ninety-five per cent of our work coincidentally consists in selling vehicles to avoid taxes,” according to The Guardian.” (April 3, 2016)

Meetu Jain writing for the Outlook India magazine quotes ex JNU Professor and black money expert Arun Kumar, “It might not be illegal but what about the morality? If it were a straightforward deal, why would businessmen employ the services of a company such as MF? And this is besides the fact that a poor country is losing out on taxes if companies are set up in jurisdictions such as these tax havens,” he adds. (April 8, 2016) A global tax avoidance problem requires a coordinated response, and the papers point to the urgent need for much more transparency in the movement of global finance capital as stated byThe Hindu April 7, 2016.

Pakistan’s opposition parties have categorically criticized Prime Minister Nawaz Sharif in his decision to form a judicial commission to probe his family in ‘Panama Papers’ revelations. “Everyone wants something done vis a vis black money accounts in Panama. Nawaz Sharif took the initiative by announcing a judicial commission to probe the scandal and his family to defuse the current onslaughts. There is a consensus that this judicial commission is hogwash. Indeed, it will not have an access to secret documents running into millions. Therefore, the JC will be neither here nor there. However, there would be lot of Ho ha. I think people in transparency should demand of Nawaz Sharif, his family members especially to sue the company of lawyers that leaked the paper to ask them to provide evidence in a court of law in Panama. If that is not possible then they should call upon ICJ to conduct investigation in the matter and try those involved if the accusation of money laundering is false. Pakistan government and Prime Minister Nawaz Sharif should not hesitate to seek redress in international legal forums to clear his name. As far as the Judicial Commission in Pakistan is concerned, it would not do anything nor is considered credible. It will launder the PM and his family,” says Wajid Shamsul Hasan, former High Commissioner in UK for Pakistan.

What is needed to bring truth to light is not a judicial commission without any access to paper trail but a forensic audit writes a friend. However, will such a team have access to all documentation? Without this, any effort to quash the Panama Leaks story will fail.

Sarcastic quips, cartoons flash like lightening across the net on the Pajamas….oops the Panama Files. I share only one forwarded to me:

“Nawaz Sharif has appointed Judicial commission to probe and inform Nawaz Sharif if Nawaz Sharif has stolen money without telling Nawaz Sharif so that Nawaz Sharif can decide whether Nawaz Sharif did anything wrong against Nawaz Sharif or not …”

Whither Pakistan’s Quaker Oats Man?

Pakistan’s ‘Quaker Oats Man’ | Pakistan Today

Sooo....we have AWESOME judges and lawyers who are better than the set present in the International Consortium of Investigative Journalists (ICIJ)? Considering that the Panama leaks also mentioned some of our very own judges....Koi Sharam hoti hai haya hoti hai in logon mein nai hoti

 

[Dubious]

Panama Papers: Why Pakistan doesn’t care

By Kazim Alam / Bilal Memon
Published: April 11, 2016

KARACHI:
It makes perfect sense for Pakistani businessmen to own assets in foreign countries through offshore companies.

After all, the Pakistani state confiscated their assets in the 1970s. Businessmen that owned banking, power, auto, insurance, petroleum, shipping and steel companies lost their assets overnight to the state in the name of nationalisation – a fancy name for the outright seizure of private property by the ruling elite.

The Panama Papers show family members of Prime Minister Nawaz Sharif own London properties via offshore companies. Setting aside the moral conundrum for a while, let’s get some facts straight. Sharif’s late father was a successful entrepreneur whose entire business was taken away by an ideology-driven regime of Zulfikar Ali Bhutto.

Later on, the Sharif family rebuilt its business empire, which became a repeated target of state harassment in the two subsequent governments of Bhutto’s daughter as well as the regime of General Musharraf. This makes it hardly surprising that his family members own some of their assets through offshore companies. While a strong case exists against the prime minister’s family owning foreign investments through shady companies, what about businessmen that do not hold political office? What makes them wary of the powers that be, as the era of socialism is, thankfully, over and democratic culture is taking root in Pakistan?

There are two major contenders for the title of the uncrowned king as for the country’s stock market. The first one, with major stakes in banking, brokerage and asset management, was forced to live in Dubai for many years under the last PPP government. Word had it that one of the most powerful political figures in the country demanded a ‘cut’ out of his business, which forced him into self-imposed exile.

Tables were turned with the ouster of the PPP from power in 2013. Now it was the turn of the other stock market guru to face harassment. He is now hounded by bureaucrats day and night for alleged corruption while his CEO has been languishing in jail for over four months on frivolous charges.

A state whose rulers have no qualms in hounding businessmen in the name of ideology or alleged corruption should think twice before asking them to bring their offshore assets back. Once bitten, twice shy.

Why people are not appalled when they should be

This argument makes sense – in fact, a little too much of it – and within it lies its counter.

There is no doubt that Pakistan suffers from a variety of issues and tax evasion forms a major chunk of the rotten pie. When democratic leaders stash away their cash in offshore companies, the argument ‘so what if others do the same’ makes for a pretty good reply — barring the fallacy that comes along with it.

What would happen if everyone started doing the same? There is already a booming informal economy in the country and a poverty line that should embarrass the government as well as those living well above it.

If the filthy rich have the option of going ‘offshore’, then the slightly less rich should have a localised version of it as well. And they do. It is called the Federal Board of Revenue (FBR).

Things have changed and so has the country’s revenue. But the increase has mostly come on the back of high tax rates and a slight conscious-awakening on part of the authorities and some taxpayers.

Nevertheless, it is safe to say that tax authorities and some of the officials have done what Mossack Fonseca does so openly. The FBR’s subtle help and general lethargic attitude aided several less-than-filthy rich evade taxes at a local level for a very long time — this is why Panama seems a bit inconvenient when there is a similar option available within the country.

When there are notoriously famous examples of people looking at every possible location on the world map to save money, the argument that others need to pay their tax loses a lot of its shine. People are right when they say that the Panama Papers present more than just a legal issue. It threatens to dissolve the very fabric of a moral and ethical society where the argument – that the rich get whatever they want – is reinforced in a rather cruel manner.

But one of the reasons why public outcry has not been as much as in Iceland or elsewhere for that matter is because the public’s the same. The rulers come from within the ruled and represent the kind of society they live in.

Tax evasion is just not a big deal because whoever gets a chance has grabbed it with both hands. Those who pay their taxes are not nearly powerful enough. This is what’s wrong with Pakistan.

What is an offshore company?

Offshore companies are banks, corporations, investments and deposits located outside one’s national boundaries. Though a company could legally move offshore to avoid tax or enjoy relaxed regulations, they can also be used for illicit purposes like money laundering or tax evasion.

Legal uses

Some people, for example, need a bank that specialises in asset protection. Others require transaction-intensive business accounts. Others may need a very low deposit minimum, while other high net worth individuals may be looking for safe private banking options.

Illegal usage

What entices most people to invest in offshore companies is the fact that apart from being a legal procedure it promises secrecy. The ill-gotten gains can be easily transferred abroad with no fear of confiscation.

Privacy

Offshore accounts are protected by privacy laws therefore, they do not permit anyone to learn how much money one has in an account and protects the assets from being seized.

Tax evasion

Multinational corporations have also been used to avoid paying taxes for years via practice called inversions. Major US firms have structured merger deals to reduce tax liabilities. They change official addresses and pay lower taxes on profits they shift offshore.

Illegal financing

Though legal, the offshore accounts give the advantage of reduced transparency, which leads to illegal activities. This is why millions of terrorists and drug smugglers tend to use them to raise and move funds conveniently and to conceal sources of funds and ownership.

kazim alam is a staff correspondent / bilal memon is the business editor


Panama Papers: Why Pakistan doesn’t care - The Express Tribune

Its fine if you are powerful to go take your business abroad but then why be a hypocrite and expect others to pay taxes...something you refuse?

The Panama Papers and Pakistan: Beyond Nawaz Sharif

The Panama Papers highlight Pakistan’s national problem with tax evasion and corruption.
By Najma Minhas
April 11, 2016

One head has rolled and many more are spinning as those in the limelight try to deal with the implications of the Panama Paper leaks. An Alice in Wonderland world has opened before us. Every day we learn more about the crafty world of lawyers and accountants, used by the ultra-rich who siphon their money — legitimate or otherwise — into shell companies hidden away from the tax authorities of the world. We mere mortals are finding out about the complexities of this world thanks to the arduous and laudatory work being done by the Munich Newspaper Suddeutsche Zeitung working with the International Consortium of Investigative journalists, who in the short to medium term may have done more for the cause of democracy and accountability of leaders than anyone else.

In the Panama Papers, over 200 people from Pakistan have been named as having offshore companies; this includes media organizations, businessmen, a sitting and a retired judge, and — most controversially — politicians and their relatives. So far the list includes the three children of the sitting prime minister, Nawaz Sharif; relatives of the two wives of Shahbaz Sharif (the chief minister of Punjab and Nawaz Sharif’s brother). The name of ex-prime minister Benazir Bhutto name has cropped up as well; she, her nephew Hasan Ali Jaffery and former interior minister Rehman Malik are said to have co-owned Petrofine FZC. The family of Osman Saifullah, a senator for the PPP, holds the record, having registered 34 offshore companies. Ironically, Osman Saifullah is currently a serving member on the tax reform commission ; though of course these companies may all be legitimate, it’s no wonder people may get the impression that the cat is being asked to take care of the canary.

Pakistan is a poor country. Its GDP in 2015 was $270 billion, and it has a foreign debt over $62bn. It also has a perennial problem collecting taxes. In 2013, its tax-to-GDP ratio stood at 11.2 percent, among the lowest in the world. In order to increase taxes collected, Pakistan has moved disproportionately toward a system of indirect taxes that hits the poor where it hurts them hardest: food, drink, and transport to work. At the same time, Pakistan has received massive amounts of aid in the past 10 years from developed countries. USAID alone gave close to $2 billion in the last three years.

For a poor country like Pakistan, a recipient of foreign aid, two important questions arise from the Panama leaks; what is the original source of this money and was tax paid on it before it left the country to invest in bigger and better things? The Pakistani prime minister, Nawaz Sharif, gave a recorded speech to the nation where he went on the offensive and claimed the family was being politically maligned over the leaks. He announced that he would set up a judicial commission — seen as the graveyard of inquiries — to clear the family’s reputation, explaining that the funds were legitimate profits from industrial successes. Critics, however, question how the family made enough money for Sharif’s children to set up large offshore companies in 1993 and 1994 and buy multi-million flats in London. It should be pointed out that Sharif’s political career was booming at that time; he was the finance minister of Pakistan’s largest province, Punjab, from 1981-85, was Punjab’s chief minister between 1985-90 and then prime minister of Pakistan between 1990-93.

The opposition is refusing the idea of an investigating commission headed by a retired judge. They have said that the commission does not have the qualifications to analyze where the money has come from. Instead, the opposition is demanding a forensic audit of the money through a qualified international company.

The problem is far bigger than one family, however. Estimates of amount lost annually to the Pakistani Exchequer because of corruption vary between $50 billion to $75 billion. Last year, people were glued to their TV screens as model Ayyan Ali was tried and convicted of money smuggling after caught with $500,000 cash in her bag as she was taking a flight to Dubai. Ayyan purportedly made around 42 trips abroad the past few years. She is believed to be one of many carriers of cash. The former state bank governor Anwar Yasin stirred up a hornets’ nest in 2013 when he told a parliamentary committee that up to $25m daily is taken out of Pakistan in briefcases.

Despite their wealth, some of these individuals pay negligible amount of tax. Some of the 200 names linked to offshore companies by the Panama Papers do not even appear in the Federal Board of Revenue’s published lists of Pakistan’s top taxpayers. Many made their wealth in sectors where they for years have lobbied governments for protection and subsidies to run businesses. In the case of politicians, many registered companies were set up during their times in power.

For years, there have been rampant rumors in Islamabad about the interest that respective Pakistani governments have shown in doing business with Turkey and China, countries with lax attitudes toward bribery and money laundering regulations. Furthermore, speculation has abounded that some of the companies that appear in the guise of Chinese or Turkish companies are actually front companies in offshore locations with actual ownership being local political leaders.

The Panama Papers leaked documents from Mossack Fonseca, one law firm in one country. There are probably many more names out there. Pakistan’s problem with tax dodging and corruption is not news, but the scale revealed by the leaks is certainly jarring.

Najma Minhas is the Director of Governance & Policy Advisors, a consulting company which works on governance and policy issues.

The Panama Papers and Pakistan: Beyond Nawaz Sharif | The Diplomat

Shameless idiots looting the country and buying homes in hell!

 

[DESERT FIGHTER]

Akheloius you seem surprised ?

 

[Stephen Cohen]

@Akheilos

PM Nawaz to leave for London on Wednesday - The Express Tribune

 

[Desertfalcon]

What the 'Panama Papers' have demonstrated is how the professional "political class" in almost ever country is a world unto themselves. They live lives completely separate from the people they govern and are outside of the rules, laws, and ethics, they expect the common people to live by, while ignoring them in their lives. A class of hypocrites who never wind up doing what they campaign on and who really view public office as a way to become fabulously wealthy without ever having worked for it. This is why populist movements are growing rapidly in country after country.

 

[Stephen Cohen]

What the 'Panama Papers' have demonstrated is how the professional "political class" in almost ever country is a world unto themselves. They live lives completely separate from the people they govern and are outside of the rules, laws, and ethics, they expect the common people to live by, while ignoring them in their lives. A class of hypocrites who never wind up doing what they campaign on and who really view public office as a way to become fabulously wealthy without ever having worked for it. This is why populist movements are growing rapidly in country after country.

But the effects will be different in each country

It depends on the Popularity of the Government; the strength of the opposition
and how strongly the local laws are applied

Putin and the Chinese leaders will easily come out unscathed
but for Nawaz Sharif it is going to be a very hot summer

 

[Armstrong]

What the 'Panama Papers' have demonstrated is how the professional "political class" in almost ever country is a world unto themselves. They live lives completely separate from the people they govern and are outside of the rules, laws, and ethics, they expect the common people to live by, while ignoring them in their lives. A class of hypocrites who never wind up doing what they campaign on and who really view public office as a way to become fabulously wealthy without ever having worked for it. This is why populist movements are growing rapidly in country after country.

What we need is a Socialist Revolution to overthrow the bourgeois and set up the proletariat in their rightful place !

Or did I muddle up the two terms again !

 

[Desertfalcon]

Putin and the Chinese leaders will easily come out unscathed

That is because they don't have to worry about bothersome things like a free press and an independent political opposition.

What we need is a Socialist Revolution to overthrow the bourgeois and set up the proletariat in their rightful place !

Or did I muddle up the two terms again !

I am opposed to socialist cats. Just so you know...

 

[Indika]

What we need is a Socialist Revolution to overthrow the bourgeois and set up the proletariat in their rightful place !

Or did I muddle up the two terms again !

For that you need to bribe the masses, which again needs tonnes of money .

 

[somebozo]

After all, the Pakistani state confiscated their assets in the 1970s. Businessmen that owned banking, power, auto, insurance, petroleum, shipping and steel companies lost their assets overnight to the state in the name of nationalisation – a fancy name for the outright seizure of private property by the ruling elite.

The worst state sanctioned robbery post WW2.

Until PPP is completely banned from Politics like Nazi of Germany and Communist of Russia, no one will trust to invest in Pakistan..

Accumulation of wealth is important for economic growth...trade and industry development..

a $100 each in the hand of 10 people is not worth much...a $1000 in the hand of one person is worth much more..India and Pakistan have constantly focused on creating population rather than wealth...a small and wealthy population is much more powerful in international economics than a large population with trillions of GDP..what counts at the end of the day is purchasing power..

 

[Dubious]

Akheloius you seem surprised ?

No brother....I believe you were looking for the word disgusted

@Akheilos

PM Nawaz to leave for London on Wednesday - The Express Tribune

What can I do about that?