Breach of the Constitution and criticism of the ministry in the NSM case – NRK Norway – Overview of news from different parts of the country

– This is a very special case. The National Audit Office has never come across anything like this, says Auditor General Karl Erik Schjøtt-Pedersen in a press release.

The National Audit Office writes that in connection with the approval of the accounts for NSM for 2022, they were told that the relocation of the business would take place within the ordinary budget.

– NSM never informed us that they had entered into a loan agreement, despite the fact that they are obliged to inform the auditor about matters that are essential for the accounts, says Schjøtt-Pedersen.

The National Audit Office’s brief conclusions on the matter are these:

• NSM has entered into an illegal loan agreement to finance a future need for premises. It is against the Constitution and the licensing regulations.
• There is no information on loan obligations in the annual accounts.
• Neither the Ministry of Justice and Emergency Preparedness nor the NSM have informed the National Audit Office about the loan obligation.
• The ministry has not sufficiently followed up NSM’s move and the lease agreement in its agency management meetings.

– I would like to emphasize that the ministry also has a responsibility in this case. When an underlying business is in a demanding financial situation, the ministry must get involved, says Schjøtt-Pedersen.

Criticized by selection

On 8 December last year, it became known that NSM had entered into a loan agreement of NOK 200 million with the John Fredriksen-controlled company Norwegian Property.

Now the National Audit Office concludes that the loan was in breach of the Constitution, this because the state can only use money if this has been decided by the Storting.

The loan agreement led to the resignation of NSM director Sofie Nystrøm.

Shortly afterwards, the government set up a committee to examine the use of money, led by former central bank governor Svein Ingvar Gjerdrem. The Ministry of Justice received harsh criticism from the committee, for not having taken a better look at the management of NSM.

– Deserved criticism

Leader of the control and constitution committee at the Storting, Peter Frølich (H), believes that Minister of Justice and Emergency Emilie Enger Mehl (Sp) has not had good enough control over NSM.

– Høgre believes this is deserved criticism from the National Audit Office, says Frølich.

– We expect Mehl to take the criticism to heart and follow up on the National Audit Office’s conclusions.

Control committee member for Rødt, Seher Aydar, also expects the Minister of Justice to clean up.

– Once again, it is underlined how serious this matter is, and how extremely important it is that the ministries follow up their subordinate agencies, and especially the secret services, says Aydar

The National Audit Office makes several recommendations to the Ministry of Justice:

• They should ensure that NSM has proper financial management, and that they have the necessary understanding of the requirements in the financial regulations, so that the accounts give a comprehensive picture of the financial situation in the business.
• Ensure that NSM adopts government accounting standards as quickly as possible
• Inform the National Audit Office in time about matters that are relevant to their audit, and make the underlying agencies aware that they have an obligation to provide information that is necessary for audit and control