Vilhjálmsson Will Not Resign Despite Controversy Skip to content

Vilhjálmsson Will Not Resign Despite Controversy

Despite heavy criticism about the REI merger, former Mayor of Reykjavík Vilhjálmur Th. Vilhjálmsson, who authorized it, will likely remain in his post as councilman of Reykjavík City Council.

It is uncertain, however, whether Vilhjálmsson will become mayor again as the Independence Party had planned. They are expected to find someone else to replace Mayor Ólafur F. Magnússon of the Liberal Party after one year, Fréttabladid reports.

Vilhjálmsson has consulted with Prime Minister and leader of the Independence Party Geir H. Haarde about his position and also with Central Bank director and former Prime Minister and leader of the Independence Party Davíd Oddsson.

Vilhjálmsson has not, however, issued a statement to the media, but is expected to do so after a meeting in Reykjavík City Council today.

It is unlikely that Vilhjálmsson will make any drastic decision about his political future within the next few weeks. According to Fréttabladid, leaders of the Independence Party have advised him to wait until the REI debate cools down. He allegedly agreed to a merger with GGE without the proper authority.

When interviewed on RÚV’s news review program Kastljós on Thursday, Vilhjálmsson claimed he had been given authority by the Reykjavík City lawyer (Kristbjörg Stephensen currently holds that post) to agree to the merger between REI (Reykjavík Energy Invest) and GGE (Geysir Green Energy) on behalf of Reykjavík Energy (OR) in which Reykjavík City holds a stake.

Later, Vilhjálmsson said in a statement that he had not been given permission from Stephensen but from a former lawyer for Reykjavík City whose identity he would not reveal.

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