Norway's National Audit Office delivered a harsh assessment of the country's welfare administration this week. The audit revealed serious financial control failures at NAV, Norway's Labor and Welfare Administration. The findings prompted the immediate dismissal of NAV director Hans-Christian Holte.
The audit identified that NAV paid 2.3 billion Norwegian kroner for orthopedic aids without properly checking invoices. The agency only verified 0.6 percent of invoices for items like prosthetics, support braces, and custom shoes. These payments went to 17 workshops that have framework agreements with the agency.
Auditor General Karl Eirik Schjøtt-Pedersen stated the situation requires immediate correction. "This increases the risk of incorrect payments and potential exploitation of the system," he said during a press conference. The audit office assigned its middle criticism level to NAV's performance, labeling it "critikkverdig" or worthy of criticism.
Shortly after the audit presentation, Labor Minister Kjersti Stenseng dismissed Holte from his position. The ministry expressed it had lost confidence in his leadership. Holte accepted responsibility for the failures in his departing statement.
"I would have liked to continue the important work for our welfare society," Holte wrote in an email to media. "We have achieved important changes for our users over the past five years. I appreciate every single day at work. Although I acknowledge that not everyone experiences good meetings with NAV, the organization is on the right path.
The audit also raised concerns about NAV's internal controls across multiple benefit programs. Weaknesses in databases for retirement pensions, disability benefits, and parental leave payments prompted additional reservations. The audit office expressed uncertainty about the reporting of 475 billion kroner in benefits.
"NAV says this hasn't affected payments, but we can neither confirm nor deny this," Schjøtt-Pedersen noted. "NAV must improve weaknesses in internal control and strengthen routines."
This incident highlights ongoing challenges in Norway's extensive welfare system. The country operates one of the world's most comprehensive social safety nets, making proper financial controls essential. Similar audit findings in recent years have led to increased scrutiny of public agencies.
The dismissal represents a significant leadership change during a period when NAV handles unprecedented numbers of benefit claims. The agency manages everything from unemployment benefits to disability support for Norway's 5.4 million residents.
What happens next for NAV's leadership remains unclear. The ministry must appoint a new director who can restore confidence while maintaining service delivery. The agency faces the dual challenge of improving financial controls while ensuring beneficiaries receive proper support.
Norwegian public agencies operate under strict accountability standards. The audit office's findings typically trigger immediate corrective actions. This swift response demonstrates the government's commitment to financial oversight, even when it means replacing top officials.