The NSM committee advises the Ministry of Justice to carry out an external, complete review of the National Security Authority (NSM). NSM must as soon as possible review management and administration practices in the organisation. This appears in the report that the committee presented on Friday afternoon. In the committee’s view, the ministry has not followed through on the demands they themselves made. Signed loan agreement of NOK 200 million On 8 December, it became known that the National Security Authority (NSM) has entered into a loan agreement of NOK 200 million with the John Fredriksen-controlled company Norwegian Property. It has previously been assumed that the loan is in breach of the Constitution, because the state can only use money that 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 led by former central bank governor Svein Ingvar Gjedrem to scrutinize the use of money. – NSM was not equipped to carry out such a rental process on its own. There were mistakes after mistakes, says committee leader Svein Gjedrem. – NSM breached its duty to inform the Ministry of Justice precisely about the lease and failing financial assumptions. It is contrary to instructions and ethical guidelines for government employees, he continues. – Did the management of NSM deliberately mislead the Ministry of Justice in this process? – It is a bit too strong that they deliberately misled. They were not equipped to carry out a transaction of this type. Previously when they had moved, they had Defense Buildings and leaned against them. Here they stood alone, so they were not equipped for it. It was a major mistake for them to send a draft contract, and then to sign a completely different contract shortly afterwards, he replies. The loan agreement NSM entered into was later extended, first from NOK 100 to NOK 160 million on 11 January 2023 and then to NOK 200 million on 1 September of the same year. Gjedrem says that the awareness that it was actually a loan that was taken out was not that well developed in NSM. – It was a loan. The agreement had all the characteristics of a loan, and many characteristics that do not belong in a lease, he says. What is the difference between a loan and a lease? According to the Constitution, only the Storting can allocate money needed to run the state. Several other agencies have also financed adaptations of office premises. NSM’s agreement with landlord Norwegian Property stands out, however, according to the committee led by Svein Gjedrem. In the case of a lease, a landlord takes the extra cost of special adaptations. This is covered by the landlord through the rental costs paid by the tenant. – The NSM loan has completely different characteristics. It can be terminated on the day by the landlord with one month’s notice. The tenant can repay the loan whenever they wish. Here, the landlord could still own the building, but the loan could be transferred to others, says Gjedrem at the press conference. The costs ran rampant The loan of 200 million was taken out “for financing special adaptations in the building”. This is shown by e-mails between NSM and the Ministry of Justice and Emergency Preparedness that news has been given access to. On 16 November, NSM confirmed that NOK 110.6 million of the 200 million had been used. But an overview of the costs shows that NSM has spent NOK 199.8 million – ie NOK 90 million more than what NSM initially stated. The majority of that loan went to electrical work – a total of NOK 68.3 million for the new premises. NSM used the rest of the money as follows: Building adaptations cost NOK 31.9 million. Plumbing and ventilation cost NOK 4.7 and 18.5 million, respectively. In addition, 36.4 million went to “other costs”, including architectural work, consultancy and office furniture. Photo: NSM Criticizes the Ministry of Justice The NSM committee believes that the Ministry of Justice should have familiarized itself better with the financial and administrative management of and in the NSM when the NSM was transferred from the Ministry of Defense to the Ministry of Justice. Justice Minister Emilie Enger Mehl says what has happened in NSM is serious. – That there is criticism of the Ministry of Justice is completely reasonable. It’s also a way we can improve, I’m looking forward to that, she says. She will submit the report to the Storting today. – How much of the responsibility lies with you, and how do you feel that this affects the trust in how you do your job? asks VG. – I don’t evaluate my own confidence. It is clear that this affects many people in the Ministry of Justice, including me. It is something we take very seriously, she replies.
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Presents report after NSM investigation – news Norway – Overview of news from various parts of the country
