Iceland’s PM accused of lying

johannaOpposition MPs are accusing Iceland’s Prime Minister, Johanna Sigurdardottir of lying about an exchange of emails with the central bank governor about the terms of his employment.

Independence Party MP Tryggvi Thor Herbertsson said that the Prime Minister lied to parliament, and therefore also the nation. “I want a better explanation. It is like parliament, and therefore the nation, has been told an untruth. This whole matter is very suspicious,” he told

The controversy concerns whether or not the new Governor of the Central Bank of Iceland, Mar Gudmundsson, had been promised before taking his position last June that the job’s salary would remain unchanged despite a spate of top level public pay cuts.

Johanna Sigurdardottir told parliament a month ago that neither she nor any of her staff had given Gudmundsson any such promise; but that appears to be contravened by a segment of email communication published this weekend by clearly indicating that the office of the prime minister was willing to guarantee no pay cut.

Mar Gudmundsson said that some predictions said he would earn 37 percent less than his predecessor – a fact which might have made him turn down the job. The emails were therefore a clarification of his new job’s wage agreement.