The Pandora Papers Are Back in the Spotlight in Ecuador
NOVEMBER 8, 2021
BY ANDRÉS ARAUZ
After a long holiday, and President Guillermo Lasso’s attendance at the United Nations Climate Change Conference and an official visit to Spain, the Ecuadorian National Assembly readies for the release of the Pandora Papers report by the Congressional Commission investigating the president. The report looks into Mr. Lasso’s offshore dealings since 1978, and the “Pandora Papers” revelations by the International Consortium of Investigative Journalists (ICIJ). The Commission’s members meet today to review and approve the report before heading into the National Assembly plenary session.
A scathing report
A draft copy of the report, which circulated this morning — and was confirmed by various sources — is alarming for the president. Although the Commission does not have prosecutorial capabilities, its conclusions will likely result in further inquiries by the nation’s prosecutor (an investigation is already in its preliminary stages). The first part of the report establishes the role of capital flight and tax evasion in the Ecuadorian economy. It highlights the extensive web of offshore entities by the president and the Ecuadorian elite, and reveals conflicts of interest between public office and billionaire politicians.
The Commission’s recommendations to prosecute include the legal bases of perjury, bank fraud, and tax evasion, among others.
Aside from the ethics and the universal discussion around tax havens, the Commission’s report centers around a critical element: did Mr. Lasso break the law, known as the Ethical Agreement Law, which prohibits candidates and public officials from owning, directly or indirectly, assets or holdings in jurisdictions that Ecuador considers to be tax havens? The law stems from a 2017 referendum that resulted in an amendment to the electoral law (Código de la Democracia), including the inability to register as a candidate while exerting indirect property of an offshore entity. Indirect property is loosely defined to include being an officer, beneficiary, or a member of offshore entities, but also exerting de facto control or benefit.
The Commission summoned officials from the Internal Revenue Service, the Electoral Council, the comptroller’s office, the president, his wife, and his eldest son. Mr. Lasso and his family rejected the invitation to appear before the Commission. In an interview, Mr. Lasso labeled the congressional investigation an “ideological circus.” As for officials, their appearances made headlines, not because of the information revealed but by a lack of transparency. Invoking the need for express consent by Mr. Lasso, the Commission did not have access to certain tax filings and other relevant information. Mr. Lasso, in a televised address, wrongly stated that he had lifted confidential restrictions.
More:
https://www.counterpunch.org/2021/11/08/the-pandora-papers-are-back-in-the-spotlight-in-ecuador/
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