Panama Papers: Iceland PM steps down
Wed Apr 06, 2016 03:40:pm World
2.4K By sosa hills
Iceland's embattled prime minister, Sigmundur Davíð Gunnlaugsson, has become the first major casualty of the Panama Papers, stepping aside from his office amid mounting public outrage that his family had sheltered money offshore.
The leaks, from Panama-based law firm Mossack Fonseca, showed Sigmundur Gunnlaugsson owned an offshore company with his wife but had not declared it when he entered parliament.
He is accused of concealing millions of dollars' worth of family assets. Mr Gunnlaugsson has said he sold his shares to his wife and denies any wrongdoing.
What was planned as a mass protest in Reykjavik on Tuesday evening turned to muted satisfaction as demonstrators vented their anger following revelations that Gunnlaugsson once owned and his wife still owns an offshore investment company with multimillion-pound claims on Iceland's failed banks.
"We were hoping parliament would be dissolved," said Steingrimur Oli Einarsson, a fish oil trader, one of a few hundred to brave a freezing northeasterly wind on parliament square in downtown Reykjavik.
"Of course we're happy the prime minister has stepped down. But we are not satisfied with who is taking over from him, and with the fact that the government itself is still there."
He is one of dozens of high-profile global figures mentioned in the 11.5 million leaked financial and legal records, which were first published on Sunday.
Gunnlaugsson's office said in a statement that he was not resigning, but "handing over the office of prime minister for an unspecified time" to Sigurður Ingi Jóhannsson, the agriculture and fisheries minister.
Gunnlaugsson was "very proud" of his success resurrecting Iceland's economy after the 2008 financial crisis, the statement said, and "especially proud of his government's handling of ... the creditors of the failed Icelandic banks".
Outside parliament, Sigrin Eiroksdottir, a pre-school teacher, said the occasion "doesn't really feel like any kind of victory. There is so much still to put right in this country in terms of ethics, of how the world looks at us."
Lara Gardarsdottir, an illustrator, said: "It's good news he's resigned, yes. But we need far more drastic change. We're left with the same gang in charge. And the guy who's replacing the prime minister, a couple of days ago he was saying he saw nothing wrong in what he'd done."
The move still requires the formal approval of both the junior partner in the centre-right coalition government, the Independence party, and Iceland's president, "lafur Ragnar Grímsson, and a snap election is still a possibility.
Iceland is in crisis mode. It feels like 2009 all over again
Eirikur Bergmann
Sigmundur Gunnlaugsson went from people's saviour to arrogant leader unseated by offshore dealings revealed in the Panama Papers. For Icelanders, this hurts
The leaks, from Panama-based law firm Mossack Fonseca, showed Sigmundur Gunnlaugsson owned an offshore company with his wife but had not declared it when he entered parliament.
He is accused of concealing millions of dollars' worth of family assets. Mr Gunnlaugsson has said he sold his shares to his wife and denies any wrongdoing.
What was planned as a mass protest in Reykjavik on Tuesday evening turned to muted satisfaction as demonstrators vented their anger following revelations that Gunnlaugsson once owned and his wife still owns an offshore investment company with multimillion-pound claims on Iceland's failed banks.
"We were hoping parliament would be dissolved," said Steingrimur Oli Einarsson, a fish oil trader, one of a few hundred to brave a freezing northeasterly wind on parliament square in downtown Reykjavik.
"Of course we're happy the prime minister has stepped down. But we are not satisfied with who is taking over from him, and with the fact that the government itself is still there."
He is one of dozens of high-profile global figures mentioned in the 11.5 million leaked financial and legal records, which were first published on Sunday.
Gunnlaugsson's office said in a statement that he was not resigning, but "handing over the office of prime minister for an unspecified time" to Sigurður Ingi Jóhannsson, the agriculture and fisheries minister.
Gunnlaugsson was "very proud" of his success resurrecting Iceland's economy after the 2008 financial crisis, the statement said, and "especially proud of his government's handling of ... the creditors of the failed Icelandic banks".
Outside parliament, Sigrin Eiroksdottir, a pre-school teacher, said the occasion "doesn't really feel like any kind of victory. There is so much still to put right in this country in terms of ethics, of how the world looks at us."
Lara Gardarsdottir, an illustrator, said: "It's good news he's resigned, yes. But we need far more drastic change. We're left with the same gang in charge. And the guy who's replacing the prime minister, a couple of days ago he was saying he saw nothing wrong in what he'd done."
The move still requires the formal approval of both the junior partner in the centre-right coalition government, the Independence party, and Iceland's president, "lafur Ragnar Grímsson, and a snap election is still a possibility.
Iceland is in crisis mode. It feels like 2009 all over again
Eirikur Bergmann
Sigmundur Gunnlaugsson went from people's saviour to arrogant leader unseated by offshore dealings revealed in the Panama Papers. For Icelanders, this hurts
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