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Panama Papers law firm Mossack Fonseca to shut down after tax scandal

Reuters  |  PANAMA CITY 

CITY (Reuters) - Fonseca, the Panamanian firm at the center of the "Papers" scandal, said on Wednesday it was shutting down due to the economic and reputational damage inflicted by its role in the global debacle.

The so-called Papers, which consist of millions of documents stolen from and leaked to the media in April 2016, provoked a global scandal after showing how the rich and powerful used offshore corporations to evade taxes.

"The reputational deterioration, the media campaign, the financial circus and the unusual actions by certain Panamanian authorities, have occasioned an irreversible damage that necessitates the obligatory ceasing of public operations at the end of the current month," the firm said in a statement.

said a skeleton staff would remain in order to comply with requests from authorities and other public and private groups.

Nonetheless, the firm said it would continue "fighting for justice," adding it would continue to cooperate with authorities.

Last month, Panamanian prosecutors raided the offices of Fonseca, seeking possible links to Brazilian engineering company The Brazilian construction firm [ODBES.UL] has admitted to bribing officials in and other countries to obtain contracts in the region between 2010 and 2014.

Ramon Fonseca, a at Fonseca, denied last month that his firm had a connection to Odebrecht, while accusing Panamanian of directly receiving money from Odebrecht, Latin America's largest engineering company.

Varela has denied that he took any money from

(Reporting by Elida Moreno; Editing by Sandra Maler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 15 2018. 02:54 IST