Road authority boss withheld crucial information

30.10.2019 - 09:03
Road authority boss withheld crucial information
Former Landsverk CEO did not inform the government that the asphalt plant near Tórshavn needed DKK 14m for urgent repairs

The asphalt plant at Sund, Streymoy, which has so far cost the taxpayer DKK 33 million, will cost at least DKK 14 million more.

This is revealed in a condition report, which Ewald Kjølbro, the former CEO of road and tunnel authority Landsverk, received a few months prior to Landsverk signing a binding deal to purchase the plant.

The report included information on all of Landsverk’s activities, but Kjølbro decided to remove this information about the asphalt plant from the report before it was forwarded to the Ministry of Transport for assessment.

Purchase or rental agreement

The reason for the omission, according to Kjølbro, is that the asphalt plant was part of a regular tenancy agreement for Landverk at the time, and as such is irrelevant to the general description of the company’s activities.

The decision to omit the information about the extra costs came after two reminders from the National Audit Office that the rental agreement in reality was a purchase deal.

According to the report, a further DKK 14 million in repair costs are needed for the plant to continue its daily operations.

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