Integrity and the Global Elite in Paradise

Reporters have unveiled some 13.4 million secret documents in ‘THE PARADISE PAPERS’, detailing evidence of tax avoidance among high-ranking politicians and the super wealthy. Some in US President Donald Trump's cabinet have been implicated.

The leaked data was obtained by German newspaper Süddeutsche Zeitung, which said that the majority of the documents stem from offshore law firm Appleby, which was founded in Bermuda but has offices in several other locations. The company reported last month that it had been hacked (this seems to be the good part about hacking:) )

Shrinking taxes

The documents show that by using shell companies, corporations such as Nike, Apple, Uber and Facebook are able to shrink their taxes to low rates. Rock star Bono, as well as British Queen Elizabeth II's private estate, has also been involved in offshore funds, Süddeutsche Zeitung reported.

Over 120 politicians from 47 countries are involved in the tax-avoidance schemes, the paper reported. Allegedly, the global elite have parkedan estimated 7.9 trillion euros (US$9.1 trillion) in offshore tax havens.The data was published by a number of news organizations in cooperation with the US-basedInternational Consortium of Investigative Journalists (ICIJ).

Trump's Cabinet and Russian links

The leaks expose US Commerce Secretary Wilbur Ross, alleging links with Russian President Vladimir Putin's closest allies."Billionaire Wilbur Ross makes money from business with Russia. Ross is reportedly a major shareholder in an ocean freight company called Navigator,which has contracted more than $68 million through transactions with Russian energy group Sibur since 2014.In turn, Sibur's biggest shareholders include Putin-ally Leonid Mikhelson, who controls another energy company sanctioned by the US Treasury for its close ties to the Russianpresident.

In addition to Ross, Süddeutsche Zeitung reported that over a dozen Trump advisers, cabinet members and campaign donors appear in the leaked data.

German ex-chancellor implicated

Data from the Paradise Papers shows that former German Chancellor Gerhard Schröder had a management role at an offshore company.In 2009, he was part of a so-called "independent supervisory board" of the Russian-Britishenergy company TNK-BP, the documents show. The joint venture by Britain's BP andRussia's Alfa-Group was based, like many other oil joint-ventures, in the British VirginIslands.

Schröder and two others on the board contacted Appleby "about certain proceduralcompany affairs under the laws of the British Virgin Islands," according to an email from a London-based lawyer in October 2011. Appleby declined to offer their services due to a conflict of interest with another client.

In December 2011, Schröder stepped down from his post on the board. In 2013, TNK-PB was taken over by Russian oil giant Rosneft — Schröder was appointed chairman of Rosneft's supervisory board a few weeks ago.

Several German companies also had dealings with Appleby, including car rental service Sixt, Deutsche Post (DHL), Siemens, Allianz and Deutsche Bank.

Reading this, the question arises whether we, who have signed the Integrity Pledge of the Integrity Initiative and are committed to pay the right taxes and do business ethically, are stupid.

Of course, the answer is that we are not stupid and that we are doing the right things to ensure the long-term survival of our companies in the interest of our employees and stakeholders. We are not tempted by short-term greed. – If you have not joined the Integrity Initiative yet, now is the time to join us and to sign the Pledge and live up to its commitments. Comments are more than welcome – contact me under [email protected].