Iceland’s finance minister admits discussing company operations with board

Finance Minister Daði Már Kristófersson acknowledged that he discussed specific operational matters with the board of Landsvirkjun, Iceland’s power company, without its chief executive present at a meeting on January 6, mbl.is reported.

Until now, Kristófersson had said his meetings with the board concerned general governance and did not cover operational issues. He told parliament on Monday that he had asked board members about the final payment for Landsnet’s sale and the status of relations between Landsnet and Landsvirkjun.

He said the meeting had been scheduled to discuss general priorities for governance and the government’s ownership policy, but that he had used the opportunity to ask about the two matters for information.

Minutes from the meeting also refer to discussion of a dispute between the companies, the law governing Landsvirkjun and bonds the power company held after the sale of Landsnet, in connection with a dividend payment.

Opposition MPs had asked Kristófersson about the discussion during a parliamentary debate the previous week. Hildur Sverrisdóttir asked three times whether matters involving Landsnet, the bonds and a dividend counted as general governance. Bergþór Ólason and Jens Garðar Helgason also raised the issue, but the minister did not give a substantive answer at the time.

The article says ministers are not permitted to discuss individual matters with the board in this way, as it conflicts with the statutory division of responsibilities and the principle of independence between the government and the company. Jens Garðar also criticised the contact, citing competition law.

Last week, Kristófersson said the companies’ operational affairs had not been discussed. He classified talk about relations between state-owned entities as part of general government priorities as an owner, and said day-to-day operations were not addressed. On Monday, he said that asking questions about operations was a normal part of such meetings.

Guðlaugur Þór asked why the minister had not disclosed the discussion earlier. Kristófersson did not answer.