Labour’s nominee for London mayor Sadiq Khan has criticised British Prime Minister David Cameron on the appearance of his name on the Panama Papers scandal and his recent confession of being involved in the tax avoidance matter.
Khan implicated Cameron of putting London to a spot where it might start being considered as the money laundering capital of the world. He said that the failure of the government in the proper handling of the UK-administered tax escapees has pushed the super rich to launder money via the property market, thereby inflating the prices of houses in London.
“My worry is London is the world’s capital for money laundering and we have people from around the world laundering money through London’s property market leading to hyper inflation in property,” he told The Mirror UK. “What possible reason could there be to buy a property using an offshore company? What possible reason could there be to buy a property from a tax haven? And that’s why what the government needs to do is ensure there’s transparency in relation to property purchases in London.”
Khan added that it is only the prime minister and current Mayor George Osborne who have the power to act on the matter and ensure transactions are made transparent. He said that he does not have that power yet.
After the revelation of Cameron’s name on the Panama Papers, the prime minister admitted on Friday that he and his wife, Samantha, have enjoyed the benefits from the offshore fund of his late father, Ian Cameron. The Panama Papers scandal revealed that the prime minister’s father was a director of Blairmore Holdings, Mossack Fonseca’s client. Mossack Fonseca is the fourth largest overseas law firm.
According to the World Socialist Web Site, the Panama papers provided complete details about the law firm’s clients who were allowed to launder money, avoid tax payments, and also avoid sanctions. The document leaked million of records, dragging the names of several well-known people into the matter.