Shipping magnates could sink alongside Putin in Panama Papers scandal

Shipping – long viewed as a shady conduit for money transactions – is to the fore in the revelations from the Panama Papers – the leaks from a law firm that have exposed the questionable financial offshore movements of many of the world’s elite.

The sensational leak of 11.5m documents from Panamanian law firm Mossack Fonseca over the weekend has exposed many famous names as tax dodgers, with much of the media scrutiny focusing on Russian president Vladimir Putin’s billions of dollars that he has stashed around the world.

It is alleged part of Putin’s wealth came from loans to offshore entities which were claimed to be going towards a fleet of LPG carriers, ships that never materialised.

With hundreds of names listed in the papers, shipping’s exposure is set to be high. In India, the Bollywood actor Amitabh Bachchan has been revealed as a director in four offshore shipping companies, an appointment that dates back to 1993. The four companies – registered in tax havens – traded in ships worth more millions of dollars. Bachchan is among the most famous faces in Bollywood.

Also in India, ports and shipping tycoon Gautam Adani’s elder brother Vinod has been caught up in the scandal.

Across the border in Pakistan it has emerged that Benazir Bhutto’s oil firm paid huge bribes to Iraqi President Saddam Hussain for contracts.

The revelations contained in the Panama Papers have brought the issue of tax havens sharply back into the public arena. Shipping’s use of lower tax domiciles is likely to be questioned as the full extent of the investigations become clear.

Splash will bring more news of shipping’s exposure in the coming days.