District Attorney halts bribery investigation in Selfoss, Iceland

The District Attorney has ceased an investigation into alleged bribery that reportedly occurred in Selfoss in 2020. The probe was linked to a development project in the municipality of Árborg.

The investigation has now been halted concerning Leo Árnason, one of the owners of Sigtún Development Company. Former town councilor Tómas Ellert Tómasson recorded a meeting with Leo, claiming that Leo offered him assistance for re-election in exchange for influencing the town council’s decision.

The case primarily revolved around the Landsbankahús building in Selfoss, which was for sale in 2020. Sigtún reportedly made a bid of approximately 360 million ISK, while the municipality’s bid was about 380 million ISK before withdrawing just before the meeting between Leo and Tómas took place.

Tómas believes that at this meeting, a bribery offer was allegedly made. A document from the meeting indicated that Leo and Tómas were to lead the planning for the area around the Landsbankahús, which included plans for a hotel with 130 rooms, an expansion of the swimming area, and acquiring plots opposite the building. The document also mentioned organizing the election campaign, including opinion polls, media coverage, advisory services, and expenses.

Three years later, Tómas presented his view that an attempt at bribery had occurred, a claim consistently denied by Leo. Bribery can carry a sentence of up to six years in prison.

The District Attorney had initiated an investigation last year due to media coverage of the case, leading to several interviews, including those with Leo and Tómas. It has now been confirmed that the investigation has been discontinued, although no reasons for the decision have been provided.