Bribery investigation discontinued in Selfoss linked to Sigtúns Development Company

The District Prosecutor has discontinued an investigation into alleged bribery that reportedly occurred in Selfoss in 2020, linked to a development project in the municipality of Árborg. This case involves Leó Árnarson, a co-owner of Sigtúns Development Company, and Tómas Ellert Tómasson, a former municipal representative for the Center Party.

During a controversial meeting, Tómas claimed that Leó offered him political assistance in exchange for influencing the municipal council’s decision regarding the purchase of the Landsbankahús building in Selfoss. In 2020, the building was listed for sale, with Sigtúns bidding approximately 360 million ISK, while the municipality later submitted a higher offer of around 380 million ISK before retracting it just before the meeting occurred.

Tómas took a photo at this meeting, which he argues proves bribery was proposed. Documents from the meeting outlined plans for a total area near the Landsbankahús, which included a 130-room hotel, an expanded swimming area, and land acquisitions. Furthermore, it mentioned organizing a campaign involving polls, media coverage, consulting, and associated costs.

Three years later, Tómas perceives this as an attempted bribery, a claim which Leó has consistently denied. Bribery can result in a prison sentence of up to six years. The investigation was sparked by earlier reports and included several testimonies, including Tómas and Leó’s, but it has since been concluded, with no reasons given for the decision to end the inquiry.