The dramatic departure of NSM CEO Sofie Nystrøm takes place against a background of internal unrest that stretches back quite a long way. As early as June 2022, shop stewards from eight different trade unions sent a letter to the management of NSM, in which they strongly express concern about insufficient cooperation and “unacceptable practices”. And it’s not just any government agency we’re talking about: As part of the Norwegian intelligence, surveillance and security services, the NSM must, among other things, detect computer attacks and secure information, systems, objects and infrastructure of civil and military importance to Norway. The case in summary Sofie Nystrøm, director of the National Insurance Agency (NSM), has resigned due to an illegal loan agreement of NOK 200 million. The loan is a breach of current laws and regulations, including key points in the budget and financial regulations. Minister of Justice and Emergency Preparedness Emilie Enger Mehl (Sp) confirms that serious mistakes have been made and that the government is now working with the Ministry of Defense to survey the matter. Law professor Mads Andenæs at the University of Oslo expresses shock at the case and believes it is a matter for Økokrim. The loan was taken out in connection with NSM’s move to new premises in Fornebu, with unfavorable terms such as an interest rate of 10 per cent. The government has initiated a review of the loan agreement and the circumstances surrounding it, and has instructed NSM to stop all payments to the loan agreement. The summary is made by an AI service from OpenAI. The content is quality assured by news’s journalists before publication. Eleven breaches In the notification letter, which news has obtained, from 15 June last year, the management at the National Security Authority is accused of having breached the Main Agreement on eleven different points. The main agreement is between the employees and the employer. – NSM is currently facing major challenges, both in terms of new and expanded tasks, co-location with relocation, rapid changes and significant staffing. In this situation, it is crucial that the employer plays on a team with the employees, the letter states. It is the style of director Sofie Nystrøm, who resigned on Friday. Here is the letter from eight of the unions. IDF meetings are information, discussion and negotiation meetings between the state employer and representatives from employee organisations. The eight trade unions that joined together to send the letter state bluntly that an “unacceptable practice on the part of management has developed when it comes to complying with the provisions of the Main Agreement”. Sofie Nystrøm, who started the day as head of NSM on Friday, tells news that she has “always been keen to involve the shop stewards as much as possible in important decision-making processes.” – I am happy that we have had a culture where shop stewards speak up about matters they think are important. – I understand that changes in an organization can lead to concerns and challenges, and I am familiar with the letter from the union representatives. Although I am no longer in a position to talk about the follow-up and cooperation going forward, we took their concerns seriously, she continues. Nystrøm defends the move to Fornebu as follows: – We wanted to gather as many of our employees as possible at a new office in Fornebu, and this was done based on an appropriateness assessment and a readiness assessment, but also based on a cost assessment. The current management of NSM has not had the opportunity to answer news’s questions about the matter. Overspending But the dissatisfaction of the NSM employees is not limited to allegations of weak dialogue and insufficient cooperation between the parties. news can now tell about an overspending in the National Security Authority which caused the warning lights to flash before the summer. Several tens of millions of kroner had to be brought in through extensive savings measures, which caused concern among the employees and helped to intensify the dissatisfaction with NSM’s management and director Sofie Nystrøm. – NSM has been given increasingly more and more demanding tasks as the national security situation has changed. Over time, we have experienced that the current allocations from the state budget have not covered NSM’s needs in several areas, writes Nystrøm in a reply to news. Lack of money news has spoken to several sources with in-depth knowledge of internal affairs in the National Security Authority. What the sources say may help shed some more light on the loan and lease agreement that was entered into with John Fredriksen’s real estate company Norwegian Property, and which led to Nystrøm’s abrupt departure: Rent and wages take up most of NSM’s budget. In order to finance the overconsumption, a number of extensive savings measures have been introduced. The budgets for specialist departments were revoked, and a central control was introduced over all expenditure over NOK 400. This also applied to planned trips and exercises, and brought an abrupt halt to activities that had previously been prioritized. Exceptions were made for courses and events where travel and accommodation were covered by an external client. According to news’s sources, the overspending at NSM is partly linked to the costs of moving to Fornebu. There are expensive special adaptations required for buildings to be used by the intelligence, surveillance and security services. But Nystrøm rejects this: – It is wrong, the savings measures have nothing to do with the move to Fornebu. She adds that it is not possible for her to go into “details of the saving measures implemented or graded information” and refers to NSM for further comments. NSM’s current management has also not had the opportunity to answer news’s questions about these matters. Sources of income In addition to concern about major savings measures, several employees are said to have expressed unease related to internal priorities. The politicians have decided that NSM will also offer services and run activities that can be invoiced and thus generate income for the agency. This may concern courses, advice on the construction of bug-proof rooms or invoicing for projects within the defense sector. But the demanding budget situation has meant that other important tasks have been pushed aside in favor of such activities, according to news’s sources. This can be problematic considering that the services of NSM must cover national security interests and not primarily go to actors with the greatest ability to pay. – You will quickly end up in a situation where the business turns expertise towards what is in demand and can be invoiced and not based on what expertise is needed at national level, says a source with knowledge of the work at NSM. news learns that several NSM employees have been refused to give lectures or participate in events, if travel and accommodation were not covered by external sources. Activity related to courses and certification of IT experts, international meetings and exercises must also have been adjusted down. The ministry informed In the budget proposal that was sent to the Storting on Friday, where the government is asking for NOK 200 million to buy out of the agreement with Norwegian Property, the demanding financial situation at NSM is mentioned. From the document it appears that the Ministry of Justice and Emergency Preparedness and the Ministry of Defense were informed by NSM in October this year that “the business had an additional budgetary need in 2024”. Justice Minister Emilie Enger Mehl and the government asked the Storting on Friday for an extra allocation of NOK 200 million. Photo: William Jobling / news The Ministry of Justice asked for an explanation of this in a meeting on 1 November, and it was in this meeting that the ministries realized that it was necessary to carry out further investigations. – The ministries have since worked to clarify the facts in the case. There is still work to be done to clarify all matters, says the proposal which is now being considered by the Storting.
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Warning letter shows dissatisfaction with NSM management – news Norway – Overview of news from various parts of the country
