Mushimba in Pandora Papers

THE name of the late Namibian businessman Aaron Mushimba appears in a global leak known as the Pandora Papers, which provide a rare glimpse of how powerful public figures around the world conceal their wealth and avoid taxes.

Mushimba, who was involved in a wide range of business interests that included the fishing industry, farming, catering, real estate, and investment after Namibia’s independence in 1990, died at the age of 67 in Cape Town on 31 August 2014.

Mushimba was founding president Sam Nujoma’s brother-in-law.

He left behind assets worth around N$238 million.

Mushimba is among high-profile business people named in the Pandora Papers, the result of an investigation by the International Consortium of Investigative Journalists (ICIJ) with more than 650 reporters taking part.

The report reveals that Mushimba met with an Israeli private banker in Switzerland.

Documents further show he created three offshore companies in Panama – Ambi Trading, Eastgate International Inc, and Partners Resources SA in 2002.

All three entities had resolutions for opening bank accounts in Switzerland in 2002.

“Aaron Mushimba, director and president of the corporation, acting individually … is hereby authorised … to open, operate, sign, and draw checks against such accounts and to transact any other business of whatever nature ..,” the documents read.

The banks related to these bank accounts include Raiffeisen Bank Rive-Gauche, the Gottardo Bank, as well as the Discount Bank and Trust Company.

It is not illegal to create offshore bank accounts.

However, there has been an international crackdown on the use of offshore accounts for money laundering and avoiding taxes.

The leak also links Mushimba to Israeli private banker Mordechai Moty Arieli through a company called Partners Resources SA.

Arieli was appointed as the head of private banking at Bank Leumi in 2003.

Documents show that Arieli and Mushimba met in Switzerland on 31 May 2002.

They resolved to open a bank account for the “proper handling of the Partners Resource SA funds”.

This was to be Gottardo Bank, a bank in Switzerland that was exposed in the media for enabling tax evasion.

Mushimbas’s daughter Ujama Mushimba on Wednesday told The Namibian the family is not aware of their late father having such businesses, nor of his mention in the Pandora Papers.

“My family and I have no knowledge whatsoever of any such accounts in banks based in Switzerland held by my late father or the companies referred to in your questions,” she said.

She said the family does not know Swiss-based Israeli banker Arieli.

TaTe Diamonds owner Tangeni ‘Tashi’ Shiimi-ya-Shiimi’s name is also part of the leaked documents.

The information shows he created an offshore company in Seychelles.

Documents show he created a company there in 2014 called Hotstone Limited.

Ya-Shiimi confirmed to he owned Hotstone and operated it in his personal capacity.

According to documents, the company was created to facilitate deals to Namibia and other southern African countries, as well as local partnership arrangements.

“As an international businessman, I deemed it necessary to establish and register such a company for strategic business reasons and to ultimately allow for more efficient business operations and transactions – all guided by the relevant regulatory and judicial authorities,” he said.

All transactions and activities involving Hotstone Limited have been transparent and fully disclosed annually to the United States authorities as required by law, he said.

This year TaTe Diamonds was announced as one of Namdia’s ‘elite’ clients.

The Pandora Papers are on 14 service providers mainly operating offshore companies known in tax havens, such as the British Virgin Islands, Cyprus, Mauritius, Panama, Barbados, and Malta.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.