Benediktsson resigns as Minister of Finance and Economic Affairs

Bjarni Benediktsson, Minister of Finance and Economic Affairs, resigns following the Ombudsman’s opinion on the sale of the government’s stake in Íslandsbanki.

The Ombudsman of the Icelandic parliament, Althingi, published an opinion regarding the eligibility of Finance Minister Bjarni Benediktsson in connection with the sale of the government’s share in Íslandsbanki. It states in part that Bjarni had, in the opinion of the Ombudsman, breached his eligibility when he approved the proposal of the Government’s Banking Authority to sell a 22.5% share in Íslandsbanki on 22 March 2022.

The Ombudsman also states that he did not consider that there was any reason to question Benediktsson’s assertion about his lack of knowledge about his father’s private equity participation in the tender. On the other hand, neither he nor the public had the grounds to verify the claim, as stated in the opinion.

The scope of the examination

The opinion states that the Ombudsman's examination was limited to three points regarding the sale of the State's share in Íslandsbanki hf.

First, whether and how the rules of the Administrative Procedure Act no. 37/1993 on special suitability were met during the sale, considering that one of the buyers was a private equity company owned by the Minister’s father. Second, whether and how the preparation of the sale procedure was conducted so that the special suitability rules were strictly observed. Finally, the examination was focused on the Minister’s legal and constitutional responsibility for the sale process to be conducted in accordance with the law and in particular the special suitability rules. The Bank’s and its partners’ involvement was thus excluded from the examination and also excluded from the examination the civil consequences of possible violations of the rules in question.

Press conference this morning

Benediktsson recently called a press conference this morning at the Ministry of Finance and Economic Affairs.

Benediktsson said he was shocked to read the commission’s conclusion and regretted seeing the conclusion that he had violated his rights in the sale process.

He said he had absolutely a clear conscience in this matter. He said he found many things in the opinion ambiguous and many directly contrary to the advice he has received as minister.

More data will be published

Benediktsson said that the Ministry of Finance and Economic Affairs will share further data on the matter on the website of the Ministry of Finance and Economic Affairs, including those that were submitted to the Ombudsman of the Icelandic parliament.

He reiterated at the meeting that he had not been informed of his father’s participation in the tender and that he had never had reason to ask whether his qualifications would be tested.

Benediktsson said that the whole process of selling was in the hands of the Banking Authority through a tender process, and that he was therefore never intimidated by the possibility of possible incompetence in the process. That is why the decision came as a surprise to him.

He pointed out that no comments were made after the previous state auction process on the sale of its share in the bank.

Does not agree with the opinion but respects it

The approach had been the same as then and that was why the conclusion was in his opinion not correct. He said that he did not think it would have any effect on the outcome of the case if he had waived his seat.

Benediktsson stated that although he disagreed with the Ombudsman’s opinion, he considered it important to respect the opinion of the Ombudsman, who is a trustee of Parliament. This would have prevented him from continuing to work in the Ministry of Finance, including selling the assets of the state. He said he wanted to create peace about the project and therefore he would leave his post as Minister of Finance and Economic Affairs. He concluded that he also wanted to show that with power comes great responsibility.