Hafskip

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Hafskip was Iceland's second-largest shipping line before its collapse which became a national scandal.

The firm had fallen deep into debt and might have sunk quietly had it not been for its ties to Iceland's finance minister, who was its former chairman and still a shareholder. Instead, its insolvency in late 1985 became a fuel for rival politicians, and ignited a criminal investigation which lasted six years.

Björgólfur Guðmundsson and other executives from Hafskip had been detained and later charged with 450 criminal counts, from embezzlement to fraud. Gudmundsson was found guilty on five counts of minor bookkeeping offenses and sentenced to 12 months' probation.

There was also another scandal with the same company that happened in 1978. But the 2nd incident was larger.

[edit] See also

• Corporate scandal

[edit] External links

• The Hafskip Affair - Article by Örnólfur Árnason, in the compendium Ísland í aldanna rás 1900-2000