Celtic Meltdown

                                                   ICELAND CORRUPTION

UPDATE
12 April 2010
Iceland: Report of Special Investigation Commission
 
 Powerpoint presentation;

http://sic.althingi.is/ppt/KynningEnsku.pptx

 
More Detail

http://sic.althingi.is

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Ólafur Þór Hauksson is the most important person in Iceland today.
As head of The Office of the Special Prosecutor with a growing team of investigators, Hauksson is responsible for investigating and prosecuting the events that led up to the spectacular collapse of Iceland’s banking sector in 2008.

The government of Iceland has decided that the restoration of the financial world’s confidence in Iceland’s banking system depends on the success of his work.

In Ireland Brian Cowen of course sees things in the exact opposite. He claims that such an inquiry now could damage confidence in Ireland.

The Icelandic Government has appointed Norwegian-French Magistrate Eva Joly as a special adviser on the investigation of cases linked to the country’s economic collapse.

Norwegian born Joly specialised in financial affairs during her studies in France. In 1990 she joined the High Court of Paris as an investigating judge. She quickly made a mark with her tireless crusade against corruption, taking on, among others, former minister Bernard Tapie and the Bank Crédit Lyonnais.
Her most famous case was that of France’s leading oil company – Elf Aquitaine. In the face of death threats, she carried on the case to uncover several cases of fraud.
She was named European of the Year by Reader’s Digest in 2002. Mrs. Joly now works as a special advisor to the
Norwegian government on money laundering and campaigns for tougher international action against fraud.

OFFICES OF KPMG & PriceWaterhouse RAIDED

Special Prosecutor Hauksson conducted a search at the offices of KPMG and PriceWaterhouseCoopers. Twenty-two people took part in the raid which was to gather information on whether leading bankers knowingly published misleading information about their assets’ worth in annual and quarterly reports.
The group that entered KPMG was composed of French accounting specialists while the one that searched PWC had Norwegians.
They work for the Special Prosecutor’s office on the behest of Eva Joly.

12 months ago the Icelandic newspaper Morgunbladid investigated what kind of business ethics were practiced within the offices of KPMG.
The paper told an unbelievable story of an investor who approached the company for assistance on a business project in Croatia. Through an illegal shareholders meeting, two KPMG employees later shifted ownership towards themselves and an investor who had been a part of the operation. They used connections at the Icelandic Revenue Service to get the false documents ratified. The head of KPMG in Iceland Sigurdur Jonsson was aware of and approved this.

WIDESPREAD CORRUPTION  -  As a result of Special Prosecutor Hauksson’s work it is now becoming clear that Icelandic bankers, politicians, regulators, top officials of the government and the central bank, were all inter-connected in undermining the independence and adequate regulation of the banking and financial system. People in positions of power were typically chosen based on their political background and “connections” rather than their economic or financial expertise.

IS THIS SOUNDING FAMILIAR?  - There were a bunch of incompetent, corrupt people running the nation, whose primary motivation was to line their own pockets rather than serve the nation.
But Iceland is finally getting to grips with the problem.

BANK BONDHOLDERS MAY NOT BE FOREIGN BUT ICELANDERS  - 

Here is an interesting Icelandic story;
Glacier Bonds are bonds that have been issued in ISK by foreign parties since August 2005.
http://www.bonds.is/assets/files/glacier%20bonds.pdf
It is estimated that foreign investors are sitting on 3-400 billion ISK through those bonds, an amount that equals a quarter of Iceland’s GDP.
But no information is available about the owners of those Glacier Bonds that are keeping the economy hostage.
There are now very strong and persistent rumours that those investors might not be foreign at all, but actually Icelanders. hese are the very same Icelanders who are most responsible for the economic collapse.
Ólafur Þór Hauksson and The Office of the Special Prosecutor will no doubt get to the truth of the matter in quick time.

NAMA is another issue which the public are very uneasy about, all the leading economists in the country say it is a bad idea, as do ALL the opposition parties.

U.S. Nobel Laureate Joseph Stiglitz said that what our government is considering paying for the banks worthless debts is “criminal” and that these bankrupt banks should be put out of business and be replaced by new healthy banks who could immediately begin lending to the REAL economy and start creating jobs.

There are lots of things we need to know about what has, and is, going on in our banking system.
We need this information QUICKLY.
And we need to act QUICKLY as the Nations debts are rising at an alarming rate.