Several Political Parties Wrongfully Received Public Funds

Several political parties have received millions in public funds despite not fulfilling the necessary conditions for monetary support.

On January 21, mbl.is reported that the People’s Party (Flokkur Fólksins), led by Inga Sæland, has received 240 million ISK in public funding, even though it is registered as a non-profit association instead of a political party. The classification is a necessary, legal condition for financial allocation, established in 2021 to increase transparency and bolster surveillance of government spending.

Per Icelandic law on political associations, parties receiving more than 2,5% of total cast ballots are entitled to public funds.

In conversation with mbl.is, Inga reasons that the change in registration must happen at the party’s national conference, last held in 2019. According to Flokkur Fólksins regulations, the party should have its conferences annually.

Inga said to mbl.is that the case concerns a “minor” technicality which will be fixed at the party’s next national meeting, due February, 2025.

Following the reporting on Flokkur Fólksins’ technical foul, Vísir examined other parties’ tax registrations. On January 27, Vísir reported that the Independence Party (Sjálfstæðisflokkurinn) had the same issue as Flokkur Fólksins . In 2022, the party received 167 million ISK from state coffers before altering its registration. Additionally, the Pirate Party, Socialists and Left Greens were all in the same position.

Vísir claimed that if Flokkur Fólksins is made to pay back the amount, it would go bankrupt. In the primary conversation with mbl.is, Inga denied reimbursing the funds.