MANILA, Philippines -- The International Consortium of Investigative Journalists conducted an investigation that revealed a shadow financial system for the richest and most powerful people in the world.

The Pandora Papers recorded multiple offshore services firms aid clients who want to keep their financial activities secret. 

Tourism Secretary Art Tugade named in the Pandora Papers exposé for Solart Holdings Limited in the British Virgin Islands. | IMG Source: Philippine Center for Investigative Journalism

One of the familiar names in the papers included Tourism Secretary Arthur "Art" Tugade. He has been keeping an offshore company - Solart Holdings Limited - while working in the government for the past eight years.

"Solart" seems to be a combination of Art and his wife's name - Soledad. The company is based in the British Virgin Islands, listed with Php 75 million in assets. His children Finina Marie, Paul Louie, and Jose Arturo are titled co-directors for the offshore company. 

Public officials are required to declare their list of businesses for transparency. Tugade began his political career during the 2012 Aquino administration as president of Clark Development Corporation.

In 2016, he quit the administration to help Duterte's presidential campaign as they were law school classmates. He was one of Duterte's first picks for his Cabinet. 

Bayan Muna Representative and House Deputy Minority Leader Carlos Isagani Zarate challenged Duterte and his Cabinet to release their statement of assets, liability, and net worth (SALN) as proof that they do not have hidden wealth.

"If you are not hiding anything, do not wait until your names are included in the Pandora Papers or other similar exposés on the hidden wealth of greedy, powerful, rich or corrupt persons," he said. He added that Duterte and his allies must sign a waiver for their bank accounts to be examined for transparency. 

After the leak, Tugade released a statement in defense of his and his family's shadow financial activities. He said, "It is a legitimate attempt to grow our financial portfolio like what any astute and judicious entrepreneurs would do to diversify their investments."

Tugade also said that Solart Holdings had been declared in his SALN; however, Zarate noted that he did not exact the details of the offshore company, 

The Philippines' Constitution and the Code of Conduct and Ethical Standards for Public Officials and Employees states that government officials' failure to detail their business and monetary assets is a criminal offense. Together with Art Tugade, there are more than 900 Philippine-based individuals named in the Pandora Papers.