Arrest threat to journalist

Arrest threat to journalist

The arrival of investigative journalist Nicky Hager and his upcoming talk on the Cook Islands as a tax haven has upset the financial services industry, to the point of making veiled threats to arrest him.

There appears to be paranoia around Hager’s discussion topic – ‘10 reasons why Cook Islands should stop being a tax haven’.

“Just about everyone I’ve spoken to in the offshore sector is not comfortable with Hager being here,” says Mataraki FM broadcaster William Framhein.

Framhein says trust company lawyer Brian Mason made comments about Hager breaking the law by divulging information to the media, and could be arrested if someone made an official complaint.

However, he says he wasn’t sure if Mason was speaking in jest.

“I’m not sure if Mason was being flippant about Hager breaking the law,” he says. “I don’t know how serious he was, but I believe I’m not the only one he said that to.”

Mason, when approached yesterday, would neither confirm nor deny making the comments and refrained from discussing the topic.

In response to Hager’s upcoming talk, CI News received a letter from of the Cook Islands Financial Services Development Authority chief executive Jenner Davis, taking Hager’s commentary and presence in Rarotonga to task.

“The documents from which Hager has been deriving attention for himself were not leaked. They were stolen,” says Davis. “Like most of Hager’s views, they are established without the need for research. (The publication of stolen information should not be confused with research.)”

“Hager has ignored or denied factual information about our industry that is not in keeping with his obvious quest to drag out publicity for himself at the expense of others.”

“Consider why Hager has now come to the Cook Islands to lecture its people on what they should do. If he is interested in the wellbeing of these islands, why has he withheld the illegally obtained information for nearly two years and not handed any of it over to our police for proper investigation?” asks Davis.

Her full letter is on page 6 today.

Hager, in response to his criticism, says the reaction is indicative of the industry’s obscurity and avoidance of scrutiny.

“What it seems to show is that the offshore industry is not used to being challenged,” he says. “The reason is because they live in a zone of secrecy.”

Hager says he asked people on the street about the offshore trust industry, and most said they have no knowledge of it.

“They’re almost completely invisible,” he said. “This means that they can claim that they do strict tests and have respectable clients, but nobody can check that.”

Hager also referred to certain parts of government legislation, which he says prevent outside scrutiny of the industry: “ ... it shall be an offense for a person to disclose to any other person information relating to the establishment, constitution, business undertaking, or affairs of an international company or a foreign company” reads the constitution.

“The privacy section of the international company act is the antithesis of what we believe in as a democracy,” says Hager. “Higher principles of freedom of information, freedom of speech, and transparency are at stake.”

During the last session of parliament, the work of certain journalists including the International Consortium of Investigative Journalists (ICIJ), were criticised by finance minister Mark Brown and opposition leader Wilkie Rasmussen.

“These comments by investigative journalists carry no weight at all,” said Brown, during debate on the recently passed captive insurance bill.

Rasmussen said stories on offshore finance were published with negative undertones and portrayed the industry incorrectly.

Yesterday, commissioner Paul Heckles of the financial supervisory commission said regardless of the subject matter, Hager still has a right to comment.

“It’s a democracy, he should be allowed to speak,” he said.

Emmanuel Samoglou, Cook Islands News

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