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Last Updated Tuesday November 21 2017 08:37 AM IST

Paradise papers: British queen, Madonna, US secy parked money offshore

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Queen Elizabeth The Queen's finance managers have said there was no illegal investments: File photo

Washington: US commerce secretary Wilbur Ross has business ties to a shipping firm linked to Vladimir Putin's inner circle, according to a vast leak of financial documents that also revealed Britain's Queen Elizabeth II's investments in tax havens.

It was also revealed that Canadian prime minister Justin Trudeau's top fundraiser and senior adviser Stephen Bronfman, heir to the Seagram fortune, moved some $60 million to offshore tax havens with ex-senator Leo Kolber.

The Colombian president Juan Manuel Santos and singers Bono and Madonna are also among the 127 internationally known figures linked to offshore tax havens, according to the journalistic investigation published by media outlets.

The findings have emerged as part of the Paradise Papers, where 382 reporters from almost 100 media outlets analyzed more than 13 million tax haven documents covering the period 1950-2016. The leaks were released by the US-based International Consortium of Investigative Journalists (ICIJ), which was behind the Panama Papers leak last year.

There is no suggestion that Ross, Bronfman or the queen's private estate acted illegally.

But Ross's ties to Russian entities raise questions over potential conflicts of interest, and whether they undermine Washington's sanctions on Moscow.

The revelations about Bronfman could spell trouble for Trudeau, who was elected two years ago riding on the coattails of promises to reduce economic inequality and tax avoidance.

In the case of Queen Elizabeth's private estate, critics may question whether it is appropriate for the British head of state to invest in offshore tax havens.

Ross, a billionaire investor, holds a 31 per cent stake in Navigator Holdings through a complex web of offshore investments detailed in the documents examined by nearly 100 news organizations as part of an international collaboration.

The 79-year-old reduced his stake when he took public office, according to public filings.

Navigator Holdings runs a lucrative partnership with Russian energy giant Sibur, which is partially owned by Putin's son-in-law Kirill Shamalov and Gennady Timchenko, the Russian president's friend and business partner who is subject to US sanctions.

The US imposed sanctions on Russian entities and individuals following its annexation of Crimea and aggression in Ukraine.

Ross's private equity firm has been the biggest shareholder in Navigator.

His personal share of the firm's stake was reduced when he took office in February, but the commerce chief's investment is still valued at between $2 million to USD 10 million, according to his security filings and government ethics disclosure.

The New York Times reported that Ross's stake in Navigator has been held by companies in the Cayman Islands. His wealth, estimated to exceed $2 billion, is said to be tied to similar arrangements in various tax havens like the Cayman Islands.

"Secretary Ross was not involved with Navigator's decision to engage in business with Sibur, a publicly traded company, which was not under sanction at the time and is not currently," said James Rockas, a commerce department spokesman.

"Moreover, secretary Ross has never met the Sibur shareholders referenced in this story and, until now, did not know of their relationship."

The documents also show around 10 million pounds ($13 million) of the Queen's private money was placed in funds held in the Cayman Islands and Bermuda, first reported in Britain by the BBC and the Guardian newspaper.

They reported the funds reinvested the money in an array of businesses, including controversial rent-to-buy retailer BrightHouse, which has been accused of exploiting the poor, and a chain of alcohol stores that later went bankrupt.

A spokeswoman for the Duchy of Lancaster, which provides the monarch with an income and handles her investments, said: "All of our investments are fully audited and legitimate."

"We operate a number of investments and a few of these are with overseas funds," she added.

The spokeswoman added that one of the fund investments represents only 0.3 per cent of the total value of the Duchy.

The Paradise Papers contain 13.4 million documents mainly from Appleby, an offshore law firm with offices in Bermuda and beyond.

The documents from 19 jurisdictions on the worldwide list of tax havens were leaked from the Appleby and Asiatici Trust Law Firm and received by Germany's Süddeutsche Zeitung newspaper, which called in the ICIJ to examine them.

Read more at: Latest in World | At least 27 killed in shooting at Texas church

The opinions expressed here do not reflect those of Malayala Manorama. Legal action under the IT Act will be taken against those making derogatory and obscene statements.

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