Hans Christian Holte has stepped down as director of Norway's Labour and Welfare Administration (NAV) after the agency provided incorrect information to government authorities. The move follows a critical report from Norway's Office of the Auditor General that revealed serious control deficiencies within the welfare system.
The audit uncovered that NAV paid out 2.3 billion Norwegian kroner without properly checking invoices. The agency also failed to meet control requirements for orthopedic aid payments, checking only 0.6 percent of invoices for items like prosthetics, support braces, and custom shoes.
Holte accepted responsibility for the failures in his resignation statement. "I take responsibility for the error that occurred," he said. "Logs in databases were not activated as they should have been, and as we reported. At the same time, it's important for me to say this has not affected any of NAV's users, and the errors have been corrected."
The core issue involved inadequate logging in IT systems managing 475 billion kroner. Missing audit trails meant NAV couldn't document who made technical changes or when they occurred. This breach of internal control requirements led the auditor to issue a qualified opinion on NAV's financial statements.
Labour and Inclusion Minister Kjersti Stenseng called the situation serious. "Giving incorrect information to the ministry and Auditor General is serious. It is the top leader's responsibility," she stated. The ministry has ordered an external review of NAV's internal controls and will appoint a new director.
This resignation highlights ongoing challenges in Norway's welfare administration, one of Europe's most comprehensive social security systems. NAV handles everything from unemployment benefits to pensions and disability support, making proper financial controls crucial for maintaining public trust.
The timing is particularly sensitive as Norway faces economic pressures from demographic changes and rising welfare costs. Proper management of the system's substantial budget remains essential for maintaining Norway's renowned social safety net.
Deputy director Eve Vangsnes Bergli will serve as acting director until a permanent replacement is appointed. The ministry plans to advertise the director position shortly, seeking leadership capable of restoring confidence in Norway's vital welfare institution.
This leadership change comes at a challenging time for Norway's public administration. The country has traditionally prided itself on efficient, transparent governance, making such control failures particularly noteworthy. The new director will need to address both technical systems and organizational culture to prevent similar issues.