First Aftershock of Panama Papers Release; Prime Minister of Iceland Resigns

The Prime Minister of Iceland, whose name appeared in the Panama Papers as the owner of a company in a tax haven, resigned from his position on Tuesday, April 5. Sigmundur David Gunnlaugsson's resignation comes a day after widespread protests in Iceland against his and his wife's business activities. He is accused of registering a company named 'Winters' in the Virgin Islands with the help of the Panamanian law firm Mossack Fonseca, while simultaneously engaging in business activities during his public office. On Monday, he faced pressure from opposition parties demanding his resignation, but he stated that he would not resign. According to AFP, Sigur Ingvi Johnson, the Minister of Agriculture and Deputy Prime Minister of Iceland, announced this news on a live television program on RUV, stating, 'The Prime Minister has informed the parliamentary faction of his party that he will resign.' It is still unclear whether Olafur Ragnar Grimsson, the President of Iceland, will accept his resignation. Grimsson had opposed any requests from the opposition for early parliamentary elections on Monday. Earlier on Tuesday, the Prime Minister called for the dissolution of parliament and early elections, but the President, changing his position, stated that he needed to consult with party leaders on this matter. According to the Panama Papers, the Prime Minister established the company 'Winters' in 2007 to manage his wife's inheritance from her wealthy father. Gunnlaugsson transferred about 50% of his shares in the company to his wife for one dollar at the end of 2009. However, when he first entered parliament on April 1, 2009, he did not disclose his shareholding in the company. He expressed regret about this on Monday but emphasized that his wife complied with Icelandic laws and paid all relevant taxes. The Panama Papers, which consist of over 11 million documents, belong to the law firm Mossack Fonseca and were obtained by the German newspaper Süddeutsche Zeitung, which shared them with the International Consortium of Investigative Journalists in Washington for investigation and publication. These documents cover a 40-year period from 1977 to December of last year and, according to the whistleblowers, show that several companies registered by this law firm were used for money laundering, transferring money from drug and arms trafficking, and tax evasion. The Panama Papers have faced widespread reactions, with the names of many world leaders, politicians, wealthy individuals, and celebrities appearing in these documents.