By the Blouin News Politics staff

Iceland P.M. resigns amid outcry over offshore assets

by in Europe.

Sigmundur Gunnlaugsson, Iceland's P.M. (Source: Control Arms/flickr)

Sigmundur Gunnlaugsson, Iceland’s P.M. (Source: Control Arms/flickr)

Amid mounting pressure, Iceland’s P.M. Sigmundur Gunnlaugsson tendered his resignation on Tuesday after being implicated in an offshore tax scandal. The public had turned against him, as did legislators he thought he could count on.

The leaked “Panama Papers,” from the law firm Mossack Fonseca, show that Gunnlaugsson and his wife bought ownership of a shell company, Wintris, which benefited from Iceland’s failed bank restructuring. As prime minister, Gunnlaugsson played a crucial role in resurrecting the country’s banks, which raises questions of conflict of interest and failure to properly disclose his holdings. When asked about his involvement with Wintris in an earlier interview, Gunnlaugsson become flustered and left, accusing the reporter of asking him about nonsense. Once the news broke he insisted that he did no wrong, that he disclosed everything according to Icelandic law, and that he would not resign. (The only thing he did apologize for was his “performance” in that interview, saying the accusations shouldn’t have fazed him.)

But the storm proved too powerful for him to hold on…

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