Outgoing Mayor Contradicts REI’s Chairman Skip to content

Outgoing Mayor Contradicts REI’s Chairman

Bjarni Ármannsson, the chairman of Reykjavík Energy Invest (REI), has stated that Vilhjálmur Th. Vilhjálmsson, the outgoing mayor of Reykjavík, was aware of the implications of the merger of REI and Geysir Green Energy. Vilhjálmsson had previously denied he knew about what the merger involved.

The board of directors of Reykjavík Energy, the sole owner of REI, approved the merger in early October. One day before the board meeting, an agreement was signed between REI and Reykjavík Energy which obliged the parent company to provide REI with exclusive technical expertise in the field of geothermal research, as well as planning and marketing, for the next 20 years.

In an interview with Morgunbladid last Sunday, Vilhjálmsson stressed that he did not know about the provisions of the agreement. However, Bjarni Ármannsson, the chairman of REI and former CEO of Glitnir Bank, and Haukur Leósson, chairman of Reykjavík Energy, claim in a statement that they issued yesterday that Vilhjálmsson was fully aware of the implications of the merger.

They say that on September 23 they met Vilhjálmsson at his home where they presented him with a memorandum which they then left in his hands. All the important provisions of the agreement were introduced in the document.

In a debate with Ármannsson in the current affairs program Kastljós last night, Vilhjálmsson said that he had never seen the memorandum. However, he stopped short of accusing Ármannsson of lying.

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