Prosecutor discontinues bribery investigation involving Leó Árnarson in Selfoss

The district prosecutor has discontinued an investigation into alleged bribery involving Leó Árnarson, co-owner of the development group Sigtún, which was said to have occurred in Selfoss in 2020.

Former municipal councilor from the Center Party in Árborg, Tómas Ellert Tómasson, claimed that during a meeting with Leó, he was offered political assistance in return for influencing the municipality’s decision regarding a property deal. The issue centered around the purchase of the Landsbankahús, which was for sale in 2020. Sigtún placed a bid of approximately 360 million ISK, while the municipality initially offered around 380 million ISK but later retracted its bid just before the contentious meeting between Leó and Tómas.

During this meeting, Tómas took a photo that he claimed indicated bribery was proposed. The document presented at the meeting suggested that both were to lead the planning of an overall area near the Landsbankahús, which was expected to include a hotel with 130 rooms, an expanded swimming pool area, and land acquisitions adjacent to the bank building. Additionally, it mentioned that the election campaign would be organized, covering polling, media coverage, and associated costs.

Three years later, Tómas believes that a bribery attempt occurred, while Leó has consistently denied such allegations. The maximum penalty for bribery can involve up to six years in prison.

The district prosecutor launched an investigation into the matter following previous media coverage. Several interviews were conducted, including those with Leó and Tómas. It has now been confirmed that the investigation has been halted, although no reasons for this decision have been disclosed.