Prime Minister Ayad Allawi, a former vice president of Iraq, owned property through Mossack Fonseca shell companies registered in Panama and the British Virgin Islands, for security reasons following an assassination attempt, according to his spokesperson, who added that any income from the properties was reported and taxes paid "promptly and on time."[87]
Panama’s economy continues to grow, outdoing its neighboring countries. Between 2004 and 2013 the average GDP was 8.4%. The forecast is a promising one for Panama in 2018, with a prediction of the economy growing 5.5% and the GDP expects to expand 5.4% in 2019. The yearly income revenue from the Panama Canal just topped $1,650 million in 2017. With money in the government coffers, infrastructure projects sponsored by the government continue to be implemented, making Panama one of the leading countries in Central America in terms of infrastructure with good roads, bridges, parks, and sporting venues.
The 2012 investigation's reporters, established that Globex was owned through shell companies in Panama, and that these shell companies belonged to the president's daughters and a Swiss businessman whose name appears in other shell companies such as those that manage Azerphone, the family telecommunications monopoly. Villagers told reporters they hoped to work at the mine, which paid $12 a day, and asked them to intervene with the president about the problems the mine was causing with the water supply. They became angry and did not believe the reporters when they said the president's family had a stake in the mine.[327]

The International Consortium of Investigative Journalists helped organize the research and document review once Süddeutsche Zeitung realized the scale of the work required to validate the authenticity of 2.6 terabytes[52] of leaked data. They enlisted reporters and resources from The Guardian, the BBC, Le Monde, SonntagsZeitung, Falter, La Nación, German broadcasters NDR and WDR, and Austrian broadcaster ORF, and eventually many others.[53] Ultimately, "reporters at 100 news media outlets working in 25 languages had used the documents" to investigate individuals and organizations associated with Mossack Fonseca.[2]


Anti-corruption group Transparency International believes that the "creation of businesses while serving as president is a direct violation of the constitution".[296] Also, journalists from the Organized Crime and Corruption Reporting Project believe that with the move Poroshenko committed two other illegalities, starting a new business while in office and failing afterwards to report it on his disclosure statements.[296] Poroshenko denied any wrongdoing and a spokesman said the offshore company had no active assets and was a legitimate corporate restructure aimed at helping to sell Poroshenko's Roshen group.[296] Analysts in Ukraine responded that the secretive way Poroshenko set up these accounts was certain to undermine trust in him, his party and Ukraine itself.[297]
Art collectors Marina Ruiz-Picasso and Borja Thyssen have Mossack Fonseca companies. Thyssen's lawyer said his company was fully declared to tax authorities and Ruiz-Picasso declined comment.[269] Other celebrities involved include Spanish director Pedro Almodóvar, who won an Oscar in 2003 for Habla con ella and with his brother Agustin created a company in 1991 called Glen Valley in the British Virgin Islands. Agustin responded saying he closed the company in 1994 and it paid all of its taxes.[270]
The 2012 investigation's reporters, established that Globex was owned through shell companies in Panama, and that these shell companies belonged to the president's daughters and a Swiss businessman whose name appears in other shell companies such as those that manage Azerphone, the family telecommunications monopoly. Villagers told reporters they hoped to work at the mine, which paid $12 a day, and asked them to intervene with the president about the problems the mine was causing with the water supply. They became angry and did not believe the reporters when they said the president's family had a stake in the mine.[327]
Because of the city's position on St. Andrews Bay, bridges are very important to the area, and most directions into or out of the city require the use of one of three large bridges to cross parts of the bay. These are the Bailey Bridge to the north on Hwy 77, the Dupont Bridge to the south on Hwy 98 and the Hathaway Bridge to the west on Hwy 98. The largest of these is the Hathaway Bridge, which is the only direct connection between the beach side of Panama City, otherwise known as Panama City Beach .
Panama's politics take place in a framework of a presidential representative democratic republic, whereby the President of Panama is both head of state and head of government, and of a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the National Assembly. The judiciary is independent of the executive and the legislature.
In 2010, it was estimated that 94.1 percent of the population was literate (94.7 percent of males and 93.5 percent of females).[83] Education in Panama is compulsory for the children between 6 and 18. In recent decades, school enrollment at all levels, but especially at upper levels, has increased significantly. Panama used to participate in the PISA exams but due to debts and unsatisfactory exam results is postponing participation until 2018.[84]
International Monetary Fund (IMF) researchers estimated in July 2015 that profit shifting by multinational companies costs developing countries around US$213 billion a year, almost two percent of their national income.[35] Igor Angelini, head of Europol's Financial Intelligence Group, said that shell companies "play an important role in large-scale money laundering activities" and that they are often a means to "transfer bribe money".[36] Tax Justice Network concluded in a 2012 report that "designing commercial tax abuse schemes and turning a blind eye upon suspicious transactions have become an inherent part of the work of bankers and accountants".[37]
According to Senegalese daily Libération, the money-laundering unit Tracfin became interested in 2006 in a €300,000 payment from Groupe Marck, a French company specializing in military uniforms and anti-riot gear, to a Monaco-based entity called Citp. Citp was managed by Kane, a close friend of the president's chief of staff, Maixent Accrombessi, himself held in Paris and interrogated in August 2015. French officials wanted to ask Accrombessi about a contract between Marck and the Gabonese Ministry of the Interior for €7 million. The head of Marck, Philippe Belin, was also held and questioned. The investigation was assigned to Roger Le Loire [fr], who also conducted the so-called "ill-gotten goods" investigation, which targeted a number of African leaders including the father and predecessor of Ali Bongo Ondimba, the current president of Gabon.[31]
The Bangkok Post reported that the "Anti-Money Laundering Office (AMLO) is seeking information from its foreign counterparts regarding twenty-one Thai nationals reportedly included in a list of people worldwide using a Panama-based law firm apparently specializing in money laundering and tax evasion." It is not clear why AMLO is investigating only twenty-one. The Panama Papers include at least 780 names of individuals based in Thailand and another 50 companies based in Thailand. Some are foreigners or foreign-owned companies, but 634 individual addresses in Thailand appear in the documents that have surfaced to date, including the CEOs of giant companies Bangkok Land and Phatra Finance.[386]
As the economic and financial center of the country, Panama City's economy is service-based, heavily weighted toward banking, commerce, and tourism.[14] The economy depends significantly on trade and shipping activities associated with the Panama Canal and port facilities located in Balboa. Panama's status as a convergence zone for capital from around the world due to the canal helped the city establish itself as a prime location for offshore banking and tax planning. Consequently, the economy has relied on accountants and lawyers who help global corporations navigate the regulatory landscape.[15] The city has benefited from significant economic growth in recent years, mainly due to the ongoing expansion of the Panama Canal, an increase in real estate investment, and a relatively stable banking sector.[16] There are around eighty banks in the city, at least fifteen of which are local.
Kojo Annan, son of former Secretary-General of the United Nations Kofi Annan, appears with Laolu Saraki, the son of the late Nigerian senator Abubakar Olusola Saraki, as shareholders in Blue Diamond Holding Management Corp, registered by Mossack Fonseca in the British Virgin Islands in 2002.[29] The two were directors of Sutton Energy Ltd, also registered in the British Virgin Islands in 2002, then transferred to Samoa.[29] In 2015, Annan used another shell company first registered in the British Virgin Islands, then transferred to Samoa, to purchase an apartment in London for $500,000.[29]
In the late 1970s through the 1980s the city of Panama became an international banking center, bringing a lot of undesirable attention as an international money-laundering locale. In 1989 after nearly a year of tension between the United States and Panama, President George H. W. Bush ordered the invasion of Panama to depose General Manuel Noriega, the country's de facto dictator. As a result, a portion of the El Chorrillo neighborhood, which consisted mostly of old wood-framed buildings dating back to the 1900s (though still a large slum area), was destroyed by fire. In 1999, the United States officially transferred control of the Panama Canal Zone to Panama, which remains in control today.[6]
When Ukrainian president Petro Poroshenko took office in 2014, a popular uprising had just toppled his predecessor, Viktor Yanukovych.[292] Poroshenko pledged to sell his candy business (Roshen) if elected, but leaked documents indicate that on August 21, 2014 he instead had Mossack Fonseca set up offshore holding company Prime Asset Partners Ltd in the British Virgin Islands and moved his company there, roughly two months after the election. The move had the potential to save him millions of dollars on his Ukrainian taxes.[293] Records in Cyprus show him as the firm's only shareholder.[294] Some legal experts say the explanation may be sound;[295] however this isn't making a difference to Ukrainian media making the point that Poroshenko opened his offshore account in August 2014 as Ukrainian soldiers were being massacred by the Russians in Ilovaisk.[295] The Panama Papers report may also have figured in the defeat of a trade deal with the Netherlands in a referendum there on April 6.[295]
Of Panama’s many short rivers, those that flow to the Caribbean include the Sixaola, Changuinola, Indio, Cricamola, La Miel, and Chagres. Rivers flowing to the Pacific include the Chiriquí Viejo, Santa María, Chepo, Chucunaque, and Tuira. During the rainy season the Tuira is navigable for some 40 miles (60 km) and the Chepo for 20 miles (30 km). Water in the Panama Canal does not flow from coast to coast; rather, it is released from the rain-fed Gatún and Alajuela (Madden) lakes in the central highlands. In effect, the water flows to both coasts simultaneously via the canal’s system of locks and dams. For details on the engineering and operation of the waterway, see Panama Canal.
The Bangkok Post reported that the "Anti-Money Laundering Office (AMLO) is seeking information from its foreign counterparts regarding twenty-one Thai nationals reportedly included in a list of people worldwide using a Panama-based law firm apparently specializing in money laundering and tax evasion." It is not clear why AMLO is investigating only twenty-one. The Panama Papers include at least 780 names of individuals based in Thailand and another 50 companies based in Thailand. Some are foreigners or foreign-owned companies, but 634 individual addresses in Thailand appear in the documents that have surfaced to date, including the CEOs of giant companies Bangkok Land and Phatra Finance.[386]

In 2015, Süddeutsche Zeitung (SZ) was contacted by an anonymous source calling him or herself "John Doe," who offered to leak the documents. Doe did not demand any financial compensation in return, according to the SZ. The total volume of data comes to about 2.76 terabytes, making it the biggest data leak in history. The data pertains to the period spanning from the 1970s to the spring of 2016.


What they had counted on, however, was the influence of the separatists in the capital. Ever since October 1821, when the former Governor General, Juan de la Cruz Murgeón, left the isthmus on a campaign in Quito and left a colonel in charge, the separatists had been slowly converting Fábrega to the separatist side. So, by November 10, Fábrega was now a supporter of the independence movement. Soon after the separatist declaration of Los Santos, Fábrega convened every organization in the capital with separatist interests and formally declared the city's support for independence. No military repercussions occurred because of skillful bribing of royalist troops.
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