It appears that the leaked Dubai real estate data that was covered by international media outlets earlier this week created quite a stir. While some people, such as the current defense minister, maintain that there is “nothing” in the information that has been made public, others, such as Interior Minister Mohsin Naqvi, have expressed strong objections to being identified in public as the owners of offshore properties. During a live press conference on Thursday, Mr. Naqvi expressed his regret over the false impression that the people identified in the Dubai leaks had either purchased their properties illegally or concealed them from tax authorities.While acknowledging that his wife possesses properties in Dubai and London, Mr. Naqvi maintained that these were legally declared and bought using his own funds. He has good reason to be somewhat incensed—after all, it is no one’s business to advise someone on how to manage their finances. But Mr. Naqvi needs to be aware that, as a public official, his business dealings and those of other politicians will often be scrutinized by the public. He should not have to worry about anything as long as his hands stay clean.
Furthermore encouraging is the fact that Mr. Naqvi is endorsing requests for an investigation into the compromised data in order to ascertain whether any of the properties that have been identified were obtained illegally. Given how beneficial it will be to establish a zero-tolerance policy for tax evasion and money laundering while it negotiates bailouts from international lenders, the government must promptly declare and launch an investigation. The country’s authorities have long requested this information from the Dubai government, as was previously stated in these pages, but have been unable to do so for a variety of diplomatic reasons. They can now analyze the data and compare it with their own records since it is now available. As Mr. Naqvi has noted, the investigation’s only goal should be to ascertain whether tax compliance regulations were followed and to apprehend offenders wherever they may be. It should not harass law-abiding citizens who have simply chosen to invest in foreign real estate.Regretfully, until the nation can sort out its own affairs, lenders will continue to view it unfavorably. Starting by demonstrating a high level of seriousness about this issue is a good idea.
