Finance minister rejects claim he misled parliament over Landsvirkjun exit

Finance Minister Daði Már Kristófersson has rejected claims that he misled parliament about why Landsvirkjun CEO Hörður Arnarson left his post, mbl.is reported Tuesday. He said the dispute concerns informal lunch meetings held by the company’s board.

Kristófersson said nothing had emerged to weaken his trust in the board and that he saw no reason for an independent investigation at this stage. Speaking to reporters after a cabinet meeting, he said the meetings involved general governance matters and were for the board to decide.

A confidential email sent to the minister on September 11, before Arnarson left his post, described a serious disagreement between the CEO and the board. It included Arnarson’s concerns about the board’s governance and its communications with the ministry. In parliament on October 19, Kristófersson described the departure as the result of a general difference in emphasis and said that was the full story.

In a memorandum to the board on June 15, Arnarson criticised increased contact between the ministry and the company’s board outside annual meetings. He warned that it could be seen as political interference and create legal risks, including under European Economic Area rules on state aid.

Kristófersson denied that the ministry had intervened in Landsvirkjun’s day-to-day operations. He said its conversations with the company were similar to those it held with other state-owned companies, including discussions about introducing a profitability requirement. He described that requirement as the biggest change to the operating environment for state companies the previous year, and said he had presented it at their annual meeting.

The minister said Arnarson was referring not to ministry involvement in the company’s operations, but to shared concerns about the possibility of such interference and the importance of putting the arrangements on a healthier footing.