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Despite the global backlash over the Panama Papers leak, Panama-based law firm Mossack Fonseca has not committed any crime and is in fact the victim of a criminal hacking job, the company’s founding partner Ramon Fonseca told Reuters in an interview Wednesday.
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In what many governments and financial experts call a decades-long illegal practice, 11.5 million secret documents have exposed how Fonseca’s firm provides services to world leaders, politicians and celebrities for hiding trillions of dollars in offshore tax havens.
But the controversial lawyer claims that the "only crime that has been proven is the hack … No one is talking about that. That is the story."
The Panamanian lawyer claimed that journalists and media organizations are exploiting the Panama Papers leak as they report on those involved in the tax avoidance scheme.
The leak of company emails, contracts and official documents were "taken out of context" and misinterpreted by well-respected media outlets and transparency organizations, according to Fonseca.
His comments about the legality of his company’s practices and services seem to contradict the rapid unfolding of events two days after the leak went public.
Iceland's Prime Minister resigned Tuesday under mounting pressure from the public as thousands took to the streets and called on him to step down and for new elections.
Regarding the leaks, U.S. President Barack Obama said there is "no doubt that the problem of global tax avoidance generally is a huge problem,” in a speech to reporters at the White House on Tuesday.
He added that the leak from Panama illustrated the scale of tax avoidance involving Fortune 500 companies which runs into trillions of dollars worldwide. "It’s not unique to other countries because frankly there are folks here in America that are taking advantage of this same stuff. A lot of it’s legal, but that’s exactly the problem."
Several governments have already started investigations into companies and individuals who have been named in the leaks for tax avoidance practices.
Financial prosecutors in France announced the opening of a preliminary investigation for aggravated tax fraud. Germany’s finance ministry said the country would “pick up the ball” and start an investigation into major German banks that have been named in the leaks.
Australia, Austria, Sweden and the Netherlands were among other countries that said they had begun investigating the allegations based on more than 11.5 million documents.
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However, the lawyer at the center of the controversy admitted nothing will change and his company will survive the leak and will continue business as usual.
"This is a tropical storm, like the ones we have here in Panama where once it passes the sun will come out," Fonseca said. "I guarantee you that we will not be found guilty of anything."
Among the politicians implicated are Argentine President Mauricio Macri, Mexican President Enrique Pena Nieto, Peruvian presidential front-runner Keiko Fujimori and Brazilian lawmaker Eduardo Cunha.
U.S. allies Saudi King Salman and United Arab Emirates President Khalifa bin Zayed are both directly involved in hiding billions in offshore tax havens.
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