Big firms surface in murky Panama papers
Wilson Security has become the target of public outrage after a series of recent revelations.
Wilson is a major recipient of government contracts around the country, most prominent of which is the multi-million deal for security at offshore immigration detention centres.
The company has been linked to a Hong Kong corruption scandal after this week’s leak of terabytes of documents from Panamanian Law Firm Mossack Fonseca.
Reports say Thomas and Raymond Kwok, billionaire brothers charged with bribing a Hong Kong government official in July 2012, have been in control of Wilson Security (Raymond Kwok was later acquitted of all charges).
Media investigations say the brothers remained covert directors of an offshore company that ultimately controls Wilson's operations in Australia — Wilson Offshore Group Holdings (BVI) Limited.
Wilson has issued statements insisting the Kwok brothers were never directors of Wilson Security.
The media allegations do not hold that they ran Wilson Security directly, but rather they claim that they ran the security firm’s parent company.
Greens Senator Sarah Hanson-Young says the revelations are alarming.
“Wilson Security must be stripped of their contract for running Manus Island and the Nauru detention centres,” she said.
The Department of Immigration and Border Protection will not be drawn, but has said “the Commonwealth has strict rules for all procurement activities undertaken by Commonwealth entities”.
There are similar claims this week that BHP used Mossack Fonseca offices in the British Virgin Islands to register companies linked to its aluminium, diamonds, steel and finance arms as well.
The leaked documents show millions of dollars in loans moved through the tax haven from London, but BHP says the companies are not set up to avoid tax.
The Panama firm’s internal document raise specific issues on two firms in the British Virgin Islands linked with BHP Billiton – BHP Billiton Finance South Africa Limited and BHP Billiton UK Holdings Limited.
The concerns were labelled “mandatory high risk.”
The law firm undertook an “enhanced due diligence” after identifying that the client appeared to be undertaking riskier business ventures.
Reports say Mossack Fonseca knew nothing about the actual ownership of these BHP entities, observing: “Authorised capital is higher than the norm. The company’s activity is not stated”.
Mossack Fonseca appears to have called on BHP to disclose sources of funds and sources of wealth for the company, and give reasons behind the “high capital”.