Prime minister mistook Landsvirkjun chief’s job for a fixed-term post

Icelandic Prime Minister Kristrún Frostadóttir appeared to misunderstand the terms of former Landsvirkjun chief executive Hörður Arnarson’s employment when answering questions in parliament, mbl.is reported. She referred to him having several months left in his appointment, although he had no fixed term.

Hörður was hired as chief executive in 2009 on an indefinite basis. According to sources within Landsvirkjun cited by mbl.is, his contract did not specify when his employment would end.

Frostadóttir was responding to a question from Guðrún Hafsteinsdóttir, leader of the Independence Party, about Hörður’s departure. “Of course I regret that he resigned with a few months left in his appointment,” the prime minister said.

Stefán Vagn Stefánsson, parliamentary leader of the Progressive Party, asked whether it had been discussed or decided that Hörður’s contract would not be renewed. Frostadóttir apologised if she had “misled the discussion” and said she had understood that his appointment was nearing its end. When pressed for a clearer answer, she referred to Hörður’s age. He turns 64 in two weeks.

In her response to Guðrún, Frostadóttir also said an inquiry had been conducted and legal advice obtained. She said that advice found nothing wrong with the board’s communications, including instances when members met shortly before meetings, and added that she was not concerned about the matter.

However, the legal opinion obtained by the board was not conclusive, mbl.is reported. A separate opinion submitted by Hörður identified several issues that remained unresolved.