From Iceland — Progressives Accused of Corruption

Progressives Accused of Corruption

Published October 20, 2009

Construction contractors Fonsi has accused the Progressive Party of Reykjavík of political corruption, and has not ruled out filing charges.
According to Vísir, the matter concerns a plot of land on the corner of Austurstræti and Lækjargata. When a fire destroyed a few buildings on the property, the remains were cleared out and plans for renovation were made. The construction contract was then made up for bidding, from the city.
Two companies – Fonsi and Eykt – made bids for the project, but Fonsi was told they had not fulfilled the requirements for the task, and there were concerns that they had never undertaken as large a construction project as this before, so the contract went instead to Eykt. Fonsi general manager Sigurfinnur Sigurjónsson conceded as much to reporters that the contract deservedly went to Eykt.
However, he added, it had come to his attention that Eykt had in the past donated to the Progressive Party – one of the two parties currently in power in Reykjavík City Council. He called this connection an example of “political corruption sloppiness”.
In response, Progressive city official Hallur Magnússon denied all charges of corruption, emphasising that Fonsi simply did not fulfil the requirements for the project.
Sigurjónsson is all the same talking to a lawyer, and considering filing charges.

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