Prime Minister resigns over Panama papers

A major casualty already after the release of the Panama papers, with the prime Minister of Iceland resigning.

Iceland Prime Minister resigns over scandal

Iceland’s Prime Minister Sigmundur David Gunnlaugsson is to step down after leaked documents from a Panamanian law firm showed his wife owned an offshore company with big claims on collapsed Icelandic banks, his party says.

On Tuesday night, Gunnlaugsson had asked Iceland’s president to dissolve parliament in the face of a looming no-confidence vote and mass street protests over the revelations. Such a move would almost certainly lead to a new election.

The spotlight will continue on other leaders.

With the fallout from the leaks reverberating across the globe, British Prime Minister David Cameron also came under fire from opponents who accused him of allowing a rich elite to dodge their taxes.

And in China, the Beijing government dismissed as “groundless” reports that the families of President Xi Jinping and other current and former Chinese leaders were linked to offshore accounts.

The more than 11.5 million documents were leaked from the Panamanian law firm Mossack Fonseca. Among those named in them are friends of Russian President Vladimir Putin, relatives of the leaders of China, Britain and Pakistan, and the president of Ukraine.

Newe Zealand has been implicated as a tax haven – see “New Zealand is not a tax haven”

Meanwhile the source of the leak, the motivation and the timing of the leak also raise interesting questions.