The Current

Panama Papers pummel Iceland's PM after revelations of offshore funds

Iceland's Prime Minister swept to power on a promise to protect Iceland from what he called vulture foreign creditors and pledged to keep Iceland's assets in the country. But the Panama Papers leak suggest he was privately embracing what he publicly denounced.
Iceland's Prime Minister Sigmundur David Gunnlaugsson stepped aside from office after offshore tax haven revelations. In a statement, April 5, 2016, PM Gunnlaugsson suggested his Progressive Party's vice-chairman take over as prime minister for "an unspecified amount of time." (Bertil Enevag Ericson/Scanpix/Reuters)

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With recent revelations of the so-called Panama Paper, Iceland protesters demanded Prime Minister Sigmundur Gunnlaugsson resign, April 4, 2016. Police estimated a crowd of 8,000 people — the largest ever seen in Reykjavik.

People demonstrate against Iceland's Prime Minister Sigmundur Gunnlaugsson in Reykjavik, Iceland, April 4, 2016 after a leak of documents by so-called Panama Papers stoked anger over his wife owning a tax haven-based company with large claims on the country's collapsed banks. (Stigtryggur Johannsson/Reuters)

The data leak, the biggest in history, revealed Iceland's Prime Minister failed to disclose an offshore account created through Panamanian law firm, Mossack Fonseca. 

Gunnlaugsson walked away mid-interview when he was riled by questions from a tv journalist about a tax haven. 

Iceland PM storms out of interview

9 years ago
Duration 0:43
Grilled by reporter on Panama Papers involvement

Despite his initial refusal to resign, Gunnlaugsson has now stepped aside, handing over the Office of the Prime Minister for "an unspecified time."  

The fallout from the Panama Papers controversy has Iceland grappling with an uncertain political future. Some Icelanders are still recovering from the financial crisis of 2008 and now feel suspicions and bitterness towards politicians have now been proven.

Guests in this segment:

  • Paul Fontaine, news editor of Reykjavik Grapevine, an English-language magazine in Iceland.
  • Stefanía Óskarsdóttir, associate professor of political science at the University of Iceland.
     

This segment was produced by The Current's Sujata Berry and Willow Smith.