Reykjavik Fuel Station Contracts Under Scrutiny
Reykjavik's fuel station reduction contracts face new scrutiny after an internal audit revealed procedural shortcomings. City officials must now determine if the agreements violated competition rules and require notification to European trade authorities. The situation highlights challenges in balancing environmental goals with proper administrative oversight.
Reykjavik's city government faces questions about fuel station reduction contracts. An Independence Party council leader says many questions remain unanswered about city agreements with oil companies. Officials must now examine whether to notify the EFTA Surveillance Authority about these contracts.
A 105-page internal audit report released today examined the fuel station reduction program. Reykjavik City Council approved the plan to reduce gas stations in 2019. Negotiations with landowners began shortly after, resulting in contracts approved in 2021 and 2022.
The audit found the city's objectives were legitimate and substantive. But information sharing within the city council was inconsistent. The report also identified a lack of formal analysis of contract goals.
Auditors made twelve procedural improvement recommendations. These cover land allocation and steering committees. Hildur Björnsdóttir, the Independence Party council leader, says the report raises additional questions.
She stated, "We need to examine if these contracts violated competition or state aid rules. We must determine how we proceed with land planning from these perspectives."
The situation resembles a similar land allocation case in Efstaleiti. That case involved property the city transferred to Iceland's National Broadcasting Service.
This scrutiny comes as Reykjavik attempts to reduce fossil fuel infrastructure. The city faces balancing environmental goals with proper administrative procedures. The internal audit suggests better processes could prevent future controversies.