The confidential files leaked Sunday known as Panama Papers showed a connection between offshore firms and the son of late Victor Carranza, a prominent figure of Colombian paramilitarism, the U.S. channel Univision and Colombian local media revealed Monday.
In the 1980s, Victor Carranza was known as the “emerald tsar” as he owned emerald mines in the Boyaca mountains, near the capital. He was investigated in 2012 for allegedly funding paramilitary groups in the 1990s, according to the testimony of a former leader of one of the main paramilitary group at the time, the United Self- Defense Forces of Colombia, named Fredy Rendon Herrera.
He died from cancer one year later; his company Tecminas remains the biggest emerald trader in the country.
Hollman Carranza's name appeared in the Panama Papers among 850 more Colombian citizens, all involved in the scandal of tax evasion via the creation of offshore companies in Panama. Most of them live in Bogota, Medellin and Baranquilla. As the investigation unravels, the number of Colombian citizens involved in the scandal could still rise, informed El Espectador.
However, the Colombian law does not consider illegal the creation of offshore companies, unless the money comes from illegal sources, or if the money is not included in tax declarations.
According to RCN Radio, the government tried to label Panama as a tax haven in 2014 so money transfers could be taxed, but later abandoned the measure under the pressure of Panama's government on the one hand, and the four most powerful and influential people in Colombia on the other.