It has emerged that the son of Iceland’s Attorney General is one of two CEOs at Exista, which was one of the major stakeholders in Kaupthing Bank. And all cases sent from Iceland’s special banking collapse investigation committee for prosecution have to go through the Attorney General.
As a result of this (and other prosecutors’) uncomfortable family connections, the Minister for Justice is now preparing a change in the law to allow for the creation of a new State Prosecutor to deal solely with financial cases from the banking collapse committee, bypassing the Attorney General altogether.
Meanwhile, Olafur Thor Hauksson, head of Iceland’s Special Investigation into the banking collapse, believes he needs to increase his investigatory staff by at least half, “At the very minimum”, Frettabladid reports. Eva Joly agrees.
In a television interview last night, investigation advisor Eva Joly expressed her own growing displeasure at the progress of the investigations.
According to the world-renowned financial fraud investigator, the head of the investigation should be replaced with three: one for each bank. She also said Iceland needs to employ more foreign experts to help in the investigation.
Eva Joly, who was recently elected a French Member of the European Parliament, would not discount the possibility of quitting her role in Iceland if the government fails to take more notice of her advice in the future.
(Photo of Olafur Th. Hauksson, Head Investigator)
If she leaves Iceland is screwed
I think her concerns are real. Iceland faces an issue of credibility in world financial markets.
As a foreigner who had worked here for two years…with over 25 years banking experience…I cannot find a job because I am not related or conected well enough….
This country need to get away from the ‘boys club’ culture.
The Icelandic Mafia that brought the country down is still controlling every major bank and government move. The wealthy are still wealthy and making the ordinary hard working tax payer pay the price. Still to this point there has not been any formal major arrests/accusations on who destroyed the country. The politicians are just the Mafia’s puppets, working for peanuts compared to the group of corrupt criminals. Criminals need to be held accountable for what they did. Be smart sell whatever Krona you have left now!
I suppose that, if Eva Joly causing waves, then she’s started doing her job :-)
Mladen, Iceland has less than half a milion people, no doubt they use ‘boys club’ culture for their survival ;) it could happen soon or later.
But you should think why Italians still do the same while they are TOO MANY.
;)
What a scandal!
Family ties, policy castes, clans, mafia, … : corruption!
Icelandic banks were washing: everything has been a lie.
burned at the stake!
By the way, does Mr Oddsson take walks … ? His days should be very happy: first, create and enjoy a ‘rich’ Iceland, a lie; after, he thinks about a ruined People, a bankrupt country. His clan – former ICB governors – should be very happy as well.
I did wonder, … if Iceland is a ruined country, why the ministers still do have a fleet of luxury cars – Mercedes, BMW, Lexus, … -, more than €100000 each? Icelanders do not see these things, or, they think that they are rich men! Their minds are not lucid now? These men and women, these politics, do not understand that Iceland is a poor country now?
I do know … ‘old’ luxury cars from right-wing government – golden days era – but, … Iceland must save money!
DENSOU “But you should think why Italians still do the same while they are TOO MANY.”
IN THAT DENSOU YOU ARE REALLY WRONG, BECAUSE IN ITALY THERE ARE LAWS IN WICH MAFIA HAS BEEN ACCOUNTED AND ARRESTS ARE IN MASS. THEY IMPRISON THE WHOLE FAMILY IF NECESSARY… THERE IS NOT A MAFIA TO TALK ABOUT IN ITALY, AT LEAST NOT AS IT WAS.
THE LEVELS OF CORRUPTION IN ITALY HAVE REALLY DROPPED A LOT THANKS TO THOSE LAWS.
THERE IS STILL SOME LEVEL OF CORRUPTION, LIKE IN ANY OTHER DEVELOPED COUNTRY. BUT THE CASE OF ICELAND IS UNIQUE!! BECAUSE AT LEAST IN ITALY THE MAFIA HAS NAMES AND FACES, AND THE LAW FIGHTS AND AT THE END ARRESTS MOST OF THEM… IN ICELAND THEY ARE WHO CONTROL THE BANKS, THE GOVERMENT, POLITICIANS, BUSINESSMEN, AND GOD KNOWS WHAT… “THE DECENT MEN”
GIVE US A BREAK!!
“TOO MANY” ARE THE NUMBER OF MAFIA MEMBERS PER SQUARE KILOMETER YOU CAN FIND IN ICELAND. MAKE NUMBERS, WITH SUCH A BASTE LAND A SUCH A SMALL POPULATION… IT WOULD BE LIKE 1 IN 8-10 IS CORRUPTED SOMEHOW OR HAVE PARTICIPATED OF THIS CORRUPTION.
THE FACT IS SIMPLE: THE WOULD HAVE TO BUILD 10 PRISONS AS THE ONE YOU ALREADY HAVE TO BE ABLE TO HOST ALL THOSE CRIMINALS.
I WOULD PUT NEW LAWS AND FORCE THEM ALL TO WORK FOR THE GOVERNMENT AND THE PEOPLE, LIKE CUTTING GRASS, REPAIRING THE STREETS, AND ALL SORTS OF JOBS…
I EVEN WOULD OPEN A FISH FACTORY AND MAKE THEM ALL WORK IN THE FISH!!
PEOPLE IS STARTING TO GO OUT TO THE STREETS AGAIN!! I THINK WE ARE ABOUT TO SEE A REAL REVOLUTION IN THIS COUNTRY.. ICELAND NEEDS INTERNATIONAL PARTICIPATION AND A COALITION OF DIFFERENT OBSERVERS THAT CAN GO THROUGH ALL THE **** THAT IS HAPPENING HERE..
AND I ASK MYSELF, WHERE ARE THE AMERICANS NOW??
WE WILL HAVE SOON ANOTHER VERSION OF THE PIRATES OF THE CARIBBEAN, THAT WILL BE CALLED: “PIRATES OF THE CARIBBEAN, THE ARTIC DEFAULT”
WHAT A SHAME, ALL THIS MAFIA, BANKERS, POLITICIANS, WHAT A BIG SHAME AND WHAT A LACK OF DIGNITY, STEALING FROM THEIR OWN PEOPLE, THEY FEEL NO LOVE FOR THEIR COUNTRY THEY SHOULD BE EXPELLED TO A FOREIGN COUNTRY.
AND THEN SOME ( A FEW) HAVE SAID MANY TIMES TO ME HERE : GO AWAY!! JUST BECAUSE I TELL THE TRUTH… IT IS NOT ME WHO SHOULD GO AWAY, IT IS THIS MAFIA OF CRIMINALS WHO FEEL LESS LOVE FOR THIS LAND THAN ANY FOREIGNER.
EVEN A TOURIST WOULD FEEL MORE LOVE AND RESPECT FOR THIS COUNTRY IN A WEEK TRIP THAN THOSE ******** WHO WERE BORN HERE AND NOW HAVE SACRIFICED THEIR OWN NATION…
AND THEY WALK FREELY ON THE STREETS, AND THE ICELANDERS WATCH AT THEM LIKE LAMBS PASTING ON THE GREEN, PACEFULLY…
Densou,
Yes Iceland has around 300k population.they use ‘boys club’ culture for their survival….not right…they have used it to ‘further’ their own needs…
In regards to ITALY….the diference is that your country has beeen doing it for centuries…and it has worked most of the times from Ceaser to the current Mr. B……and one simple fact in comparison to Iceland…you can afford it…and you are good at it…
Wealth is built on Ownership…not DEBT….
honesty you can NOT buy or silence….
That is the problem in Iceland
Yes, she is.
But is she pointed out – the real job of investigation MUST be done buy Icelanders. She can help but she can’t do it for Iceland.
She also pointed out that her public appeal (and this is appeal to public for sure) has one important side. She will not let crooks in the system to use her as a cover. She doesn’t want people to think that if she is “hired” – then everything is alright.
This is not a scandal. Everyone here knows that. This is the reality of a small country.
And BTW not all relatives here are “corrupted”. Many times when I asked “Is he your relative?” I’ve got the answer “Yes. But I talked to him last time 10 years ago”…
But it is a problem – I might start digging something … then come back home and meet your wife mad at you as it turned out to be her best friend’s close relatives you are digging under. Very small country indeed.
That’s why it needs new system – when people can say directly what they think and can enforce there opinion.
indeed Mladen, but I have a grudge against those dirty deeds, I can’t stand it. Well, my personality is quite complex, don’t mind. Cheers ;)
For GUS:
http://online.wsj.com/public/article/SB120760093089595927-rC2CzCxfbHs1CuweP7KO02K3o5Y_20080508.html?mod=tff_main_tff_top
http://www.adnkronos.com/AKI/English/Politics/?id=1.0.2508905285
is it enough ?
“”Jim said:
I suppose that, if Eva Joly causing waves, then she’s started doing her job”"
“Alexander said:
Yes, she is.
But is she pointed out – the real job of investigation MUST be done buy Icelanders. She can help but she can’t do it for Iceland.”
@Alexander:
The fox can not guard the chicken coop!
Do you prefer a fox into the hen house???!
The real tasks MUST be done by foreigners; when situation is clear, the Icelanders again.
A norwegian in the Central Bank has been fine! And, former governors OUT!!
To get some money back to the Icelandic people, all government and banking official’s monies and assets should be confiscated to pay the debt. Then replace all current officials with new interim government until suitable substitutes are found. Well, that is if you could find an honest politician? We just have to dream and dream for a change. Goodluck Iceland in fixing the financial mess. Wishing you all well. Obama is doing great with America’s deficit. Peace ya all.
I thought this kind of things only happened in Italy. It’s a huge disappointment to know that what I thought to be a perfect and healthy democratic country is ruled by such a scam.
http://leconomistamascherato.blogspot.com/2009/06/iceland-corruption-investigator-eva.html
Eva Joly´s interviw 10.6.2009 on the problems regarding the investigation (english subtitles):
http://www.youtube.com/watch?v=mF5L3PnaOKs
The following is from http://icelandtalks.wordpress.com
“To loose people like Eva Joly because of this “mafia style” friend protection, political involvement and general incompetence would put Iceland to the top of the list of most corrupted states in the world.
There has got to be a reason for this sluggish actions of the government and the obvious lack of will to investigate the matter fully. What is needed is a total change of the whole system.
Beside this, one thing that strikes me is why there have not been any arrests? Why has it taken eight months to start raiding houses, obtaining computers and other evidence, and why people who are formally under investigation like Hannes Smárason have not been detained”.
I think we all agree with this, but the main problem is that while the common icelander (im not an Icelander btw, just lives here)he still seems to cope with how the sytem works.. Therefore there was no real revolution 6 months ago..
Thanks for the youtube link C.A.K.
“The reason she wants to quit is the investigation because of incredible lack of will, lack of resources and lack of professionalism.”
Source: http://icelandtalks.wordpress.com/2009/06/11/icelandic-fraud-investigation-is-corrupt-part-1/
Interview with Eva over on IWR.
http://icelandweatherreport.com/2009/06/an-interview-with-eva-joly.html
It is very simple Eva Joly in fact has quited, she said she will come back when they fix the things, that she has been telling them for MONTHS, but yesterday comes the prime minister very supportive saying the goberment will support every petition from Eva Joly, why didnt she do it before? because she says it now infront of the camaras in the middle of the caos when eva joly is quiting so it looks like she wants eva to stay, but eva joly was clear “she will come back when they fix this things she HAS BEEN ASKINF for” and like she says this things are very logic a baybe would understand that its not possible to have the street corner policeman of akranes in complete charge, and as the state prosecutor the father of somebody that is clerly with his hands covered with sh@t in this case.
There seems to be no difference between the new and the old government, there is no left or right, no values or believes, only people who rent their services to the highest bidder,
this is truly a nation of blond and blue eyed people,
i really believed it would change everything to replace the government with new people with different believes, i spent a lot of time and energy converting people i know from right politics to left, i met Tryggva Herbertson former economy adviser for Geir Haarde just before elections and gave him the hairdryer treatment for at least 10 minutes, when i stopped he said he sensed some anger from me,
i wasnt angry, i was furious, now i just feel silly, i know nothing about politics in Iceland except its rotten to the core,
what are we going to have to do to get our country back from those people ?
Johanna is probably a honest person but i suspect she was chosen by Ingibjorg
to take over because shes 300 years old,
johanna should be in Florida, siting in a rocking chair knitting stockings,
Yes she is leaving because she is become a Green party MP for EU Parilimanet.
But that aside I think I not alone in noticing a pattern here of Green-Red governemtn.
Mats Josefsson and now Eva Joly?
It is because Red-Green government is just sitting there playing with its pet projects — just like the Social Democrat did before — and ignoring what need to be done.
Jóhanna fix this conflict of interest with Attonrey General. If only because the appearance is so bad.
I expect he recluse himself for matter where his son is involved — he is not only legal eagle.
Let us not finally forget that what has happened with investigation of the corruption so far happen because of actions of Davið Oddsson.
http://icelandweatherreport.com/2009/06/an-interview-with-eva-joly.html
“IWR: Are you satisfied that your demands have been met?
EJ: Yes I am. There was substantial progress made yesterday and I definitely feel as though my request was heard and that the government understood the gravity of the situation. The State Prosecutor [Valtýr Sigurðsson] offered to withdraw from this specific case and for another prosecutor to be put in his place for this particular matter, but I feel that this is not satisfactory. He is no doubt very good at what he does but unfortunately he is unfit to act as State Prosecutor due to his family connections. Setting an ad hoc prosecutor for this case only would not work because we need access to his entire office, not only individual people within that office.”
She then goes on to say that 3 procecutor are needed — one for each bank.
“IWR: What exactly does your work here in Iceland consist of?
EJ: I’m here every two weeks, for two days at a time – although it’s four days out of my work week, as there are two full days required for travel. I work closely on the investigation with the team here in Iceland, who are all very skilled and good people. These visits will now be less regular, however, until the changes I have requested have been made and the office has resolved some of its organizational issues and is up and running.”
Until she has got over the initial duty of her work as member of EU Parliament she means.
“IWR: A major concern among the Icelandic public has been that so much time has passed since the bank collapse that the trail may have been lost – that evidence may have been destroyed, documents shredded, and so on. What are your views?
EJ: It is true that much time has passed, but the trail has not necessarily been lost. Economic crimes are very specific and clues exist about where the money has gone, even a long time after the fact.
IWR: When the investigation was getting underway it seemed that bank secrecy laws were very stringent here in Iceland and might be hindering the investigation. Is that still the case?
EJ: Bank secrecy laws are not an issue, because they cannot be opposed to a criminal investigation.”
Yes.
“IWR: In an interview on Silfur Egils last winter you mentioned that there was added pressure internationally on secrecy to be lifted in tax havens. Have you seen any progress on that?
EJ: Tax havens and bank secrecy were big issues at a recent meeting of the G20 states and when I was running for the European Parliament I promised that I would look into and work on the issue of tax havens. There is international pressure now on tax havens to lift their secrecy laws, and this particular investigation in Iceland is very symbolic in that regard.”
I am now getting more of a feeling of uncomfortableness with her that she also has her reasons for being involved with this invesigation.
She is now an elected EU politician on the left wing Green party ticket ( French member of EU parliament ).
But I cannot say that I have any problem to say of her technique and experience which stand on they own.
“EJ: That is a very important question. I think it is very dangerous to attempt to operate a single currency in a country with 300,000 inhabitants. So it is quite clear to me that having the euro would be of huge benefit and protection for you. But on the other hand, you have to consider the cost, for your sovereignty and your democracy. I really can’t give any advice on that – it is out of my jurisdiction. But I do believe in Europe being an instrument of peace and civilization..
..It would not be a problem for Iceland to become a member of the EU as you have already integrated the vast majority of the regulations and directives [being a member of the European Economic Area]”
Really she should remain silent on these issues because she is now an EU politician.
Her opinion should be only on the investigation. And let the politican conclusion be written by others.
( Her again we see this EU party line about the pillars of the EU taken by Iceland under EEA — when in fact only 6.5% of regulations or so have actually been taken into Icelandic law. Not two thirds.
I am very disapointed to see her spout the official EU line which is misleading at best. )
Eva Joly is not a person who keeps her mouth shut but instead dares to speak out HER opinions.
All of you who are criticizing everything news blogs like this – get up and start acting. Get involved. Everything as such is better than staying at home pointing fingers.
… and speaking of Joly´s “incompetence”.. Seems like you agree with Sigurjon Th. Arnaso.
Sigurjon Th. Arnason, former CEO of Landsbankinn was rewarded for the best annual report of 2007.
His lawyer, Sigurdur G. Gudjonsson just claimed from the safety of Pressan, the webzine that Bjorn Ingi Hrafnsson controls to affect public discussion on behalf of the disgraced business and political circles, that Eva Joly must be dismissed of as quickly as possible. Sigurdur even used the title “She ain’t a Jol(l)y good fellow” for his attack in which he is scathing about Joly and speculates that in her mind “all bankers in Iceland are guilty of white-collar crimes”.
But then news of Sigurjon’s 40 million ISK loan to himself started circulating in the blogosphere yesterday, people thought at first that it was made by Landsbankinn. The interests on the loan angered many, a rate of 3,5% which has not been available to anyone else for many a moon in Iceland.
Quickly Sigurjon and Sigurdur explained that he was lending himself the money from his own pension fund, which is held by Landsbankinn. Curiously the name of the pension fund had the endings SA, which indicates it is a Luxembourg. Asked why Sigurjon is paying interests to himself, Sigurdur said he saw nothing wrong with this, “this is money which he owns himself”.
But why is Sigurjon Th. Arnason borrowing money from Sigurjon Th. Arnason? Well that is the genius of Icelandic bankers and their regard for their society. Taking this money out as a loan instead of as pension Sigurjon does not have to pay taxes of 26 million ISK. Pension must be taxed as income, but loans are not taxed.
Wait a minute, are income taxes that high in Iceland? No, it turns out Sigurjon had made another 30 million ISK loan to himself, seventy million in all. And wait again, how come he owns his own private pension fund? Is that legal? No of course not, there are 2.525 others who have been paying into the fund that Sigurjon claims to own himself.
This is the man who was amongst the people responsible for IceSave remember? The IceSave fiasco that is costing his nation 650 billion ISK. He clearly wants no part in rebuilding the country by paying taxes like the rest of us.
How does Icelandic society reward such a criminal? By appointing him as a teacher at Reykjavik University of course.
Sorry to say it Ms. Joly but you really have your work cut out for you.
- From http://www.economicdisasterarea.com/index.php/features/corrupt-crooks-and-liars/
Look at this
http://www.visir.is/assets/pdf/XZ670613.PDF
interests at 3,5% are from 20.11.2028, but then of course 20 years have passed so no need to pay any interests,
this is the guy that is telling every one the Landsbanki assets will cover Icesave.
AXEL “this is truly a nation of blond and blue eyed people”
WHAT DO YOU MEAN BY THAT AXEL? LIKE EVERYONE THINKS THE SAME IN ICELAND?
ICELAND IS PRETTY MULTICULTURAL AND MIXED. IF YOU GO TO THE NORTH AREA, WICH ACTUALLY PRESENTS LESS MIXING, YOU CAN SEE PUNCHES OF ICELANDERS WITH BROWN EYES, AND VERY BLACK HAIR… AND ANYTHING MIXED IN BETWEE… AND I HAVE TO SAY THAT SOME ICELANDERS LOOK REALLY WELL WHEN THEY ARE MIXED, REALLY MUCH… THAT FRENCH FISHERMENS, IRISH AND NORWEGIAN BLOOD ALL TOGETHER…
IF IT IS A NATION FAR FROM THE BLOND BLUE EYES STEREOTYPE, IS ICELAND…
“WHAT DO YOU MEAN BY THAT AXEL? LIKE EVERYONE THINKS THE SAME IN ICELAND?”
Yes, we have been fooled to easily, we believe and trust people too much,
“To loose people like Eva Joly because of this “mafia style” friend protection, political involvement and general incompetence would put Iceland to the top of the list of most corrupted states in the world.”
That article writer really should drink less of the strong cafe so they can stop spewing out this hyperbole nonsense and get out into the world outside Reykjavík area a couple of times to see what the rest of world is actually like.
Icelandic people would need to do a lot more to get themselves up the list of most perceived corrupt country. A whole lot more. They would have to learn from and do more like Spain or Portugal and Greece and Italy.
I think our general contempt for politicians ensures that will never happen. But if we join the EU we can help the process of politicians here getting more corrupt like nearly every where else with they fat expense accounts.
And why is it that Norway went up the list of corruption more than Iceland during 2008 ‘ Corruption Perceptions Index’ ?
( Yes I know there is a lag, but Norway? Why? Please somone in Norway explain that one. It is a mystery to me. )
http://www.transparency.org/news_room/in_focus/2008/cpi2008/cpi_2008_table
Way that image problem Iceland have in finance is fixed is to pay its debts.
And investigate cases of criminal behvior fairly and to the letter of the law. And after trial punish the guilty with jail term as mandated by the laws or other punishment — such as disqualifiation from being a director, etc.
Eva Joly has her experience but it is actually how the cases are investigated that matters most. I doubt she herself would disagree with that. She is not doing the investigating her self.
In that her recommending that there be 30 or so investigaters and perhaps three specific ones leading teams under Ólafur Þór ( one for each bank ) is very reasonable.
But expressing her opinion about political matters is unwise. As it make her look partisan. Everyone have opinion about many things. They know what to keep to themself.
As an elected politician I hope she will now bring her skills and knowledge to the EU corruption — maybe she will ally with fellow fresh new Euro MP Marta Andreasen?
Or maybe not.
“There has got to be a reason for this sluggish actions of the government and the obvious lack of will to investigate the matter fully. What is needed is a total change of the whole system.”
It is because Red-Green government is interested in they pet projects and fumbling around about this EU membership that Icelanders do not want after that ridicilous early and expensive election.
And they did make sure from February that the competitent people did not have an interest in going to the FME.
And they interest instead was getting Davið out of the Central Bank. Perhaps if they had not got Davið out this investigations would have come about more quickly?
Becuase a lot of these ones one the books now certainly do appear to come from infrmation that Davið did pass on.
“Beside this, one thing that strikes me is why there have not been any arrests? Why has it taken eight months to start raiding houses, obtaining computers and other evidence, and why people who are formally under investigation like Hannes Smárason have not been detained”.
Because investigation do take time.
You know the ones where there is not people getting rounded up in the night — or taken off the street to fill some quota of arrests.
Thanks for the laugh Fisy! Transparency International is a joke, but it’s good to see them refusing to change their criteria.
Regarding Eva, the full interview, in three parts (the earlier link was only the first third of the interview):
http://www.youtube.com/watch?v=DEfivv7mqys
http://www.youtube.com/watch?v=01KtY0Iwn0A
http://www.youtube.com/watch?v=VAB8bEOpcMo&NR=1
She’s actually remarkable apolitical in it. The crux of her argument is that she was brought in partly as a figurehead to reassure the people that any crimes will be correctly investigated.
Therefore, she’s well within her rights to threaten to pull out if she feels that, for whatever reason, the government is not doing anything like enough. After all, why should she allow her reputation to be used to help cover up, whether intentional or not?
Joly wants the chief prosecutor Valtýr removed from office because the CEO of Exista is his son,
http://www.exista.is/index.aspx?GroupId=196&tabid=202
Exista is a very shady company to say the least, it owned some 30% of KB and, characters like Czhenguiz owned a large slice of Exista, a suspected fraud case regarding KB was sent to Valtýrs office and was supposed to go on to the special prosecutor’s office some how got lost in a drawer and wasnt found until 3 months later when people started looking for it,
all other cases went trough normally, i think.
>some how got lost in a drawer
That would be very interesting Axel. Do you have a link to a news item (or even blog) on that missing case? Icelandic will do, although the machine translation only gets one word in three :) .
One of the interesting things that Joly said this time around is that, even though she’s not expecting to recover loads of money, the investigation will more than fund itself. So there really is no (financial) reason for the government to grant the full budget/authorise staffing levels etc.
Bromley, i only found this on video in Icelandic :)
http://dagskra.ruv.is/sjonvarpid/4431404/2009/06/11/0/
the guy who made the complaint is a fomer KB shareholder who is not happy with the fact that KB top dogs wrote off 50 bn kr of loans to them selves,
i will try to find this on text form.
Eva Joly about the Elite
http://visir.is/article/20090616/FRETTIR01/246213563
Thanks Axel. Turns out the machine translation was worse than I thought :) .
I’ve read about the Breki Karlsson case on Iceland Review, but they just mention it very briefly.
http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=335658
Best of luck to him, and the special prosecutor if he goes for them as well.