Iceland Prime Minister Gunnlaugsson refuses to resign over 'Panama Papers'; Parliament eyes vote

REYKJAVIK, Iceland, ACCRA, April 5 - (UPI/GNA) - Pressure was ratcheted up on Iceland's Prime Minister Monday -- with large protests in Reykjavik and widespread calls for his ouster -- after his name was included over the weekend in the release of the so-called "Panama Papers."

Prime Minister Sigmundur Davio Gunnlaugsson's presence in the papers -- a leaked set of 11.5 million documents detailing a list of politicians and celebrities who hid millions of dollars in secretive offshore tax shelters to circumvent tax laws -- touched off a firestorm of protest in the Nordic nation that continued Monday.

An anonymous source provided the list from the Panamanian law firm Mossack Fonseca, which specializes in establishing offshore accounts, to a German newspaper.

Ukrainian President Petro Poroshenko, family members of Chinese President Xi Jinping, a key member of the scandal-ridden soccer organizing body FIFA, associates of Russian President Vladimir Putin and at least 33 people blacklisted by the U.S. government for offenses including drug dealing and doing business with terrorist groups, are reportedly on the list.

Maintaining an offshore account to avoid taxes is not illegal but could be perceived as unethical and a conflict of interest, and the list's publication has spurred calls for reform.

Gunnlaugsson is under fire for not revealing he and his wife have a stake in a company registered in the British Virgin Islands, Wintris Inc., in the seven years he has been involved in Icelandic politics.

A demand for a snap election, in effect a vote of confidence for the prime minister, is expected from Iceland's parliament soon.

Former Prime Minister Johanna Sigurdardottir, in a post to Facebook Sunday, questioned Gunnlaugsson's moral character.

"The prime minister should immediately resign," she wrote.

Gunnlaugsson, though, has said he broke no laws and that his wife did not benefit financially. He has so far refused calls to resign.

Thousands of demonstrators gathered Monday outside Icelandic Parliament on Reykjavik's Austurvöllur Square to demand the prime minister's resignation.

Wintris was used to invest millions of dollars of inherited money, according to a document signed by Mr Gunnlaugsson's wife, Anna Sigurlaug Palsdottir, in 2015, BBC News reported Monday.

Steingrimur Sigfusson, former Icelandic finance minister, told The Guardian, "We can't permit this. Iceland would simply look like a banana republic. No one is saying he used his position as prime minister to help this offshore company, but the fact is you shouldn't leave yourself open to a conflict of interest, and nor should you keep it secret."

The prime minister and his wife have each stressed that Icelandic tax authorities are aware of their financial interests, and that there has been no suggestion of tax evasion or dishonesty on their part.

Gunnlaugsson rose through the ranks of Iceland's politics by decrying foreign creditors who he says were instrumental in the country's 2008 banking system collapse.

GNA