Compensation for fund’s missing funds?
Pension funds and other investors lost hundreds of millions of krónur in the affair, as reported last night on RÚV’s investigation programme, Kveikur. The programme revealed that projects worth billions of krónur had been handed to VHE ehf., a contracting company, without tender. Kveikur also revealed documents indicating that tens-of-millions were paid in consultation fees from VHE to Pétur Hannesson, the then-CEO of Upphaf. The investigation has now been handed over to the district prosecutor’s office.
A statement from Máni Atlason, current CEO of GAMMA, says that a lot of investors could be eligible for compensation from those responsible. The company’s relationship with VHE has been dropped at two of Upphaf’s biggest development projects. Construction at both sites has re-started with different contractors following an open tender process.
GAMMA also appointed the Grant Thornton accounting firm to investigate the fund’s operations in recent years, alongside the financial restructuring of Upphaf. Initial findings from Grant Thornton are already ready and will be presented to stakeholders in the coming weeks, the statement says.
The GAMMA investment fund was bought by Kvíka Bank in spring 2019. GAMMA’s biggest asset was the Upphaf property company. When the new owners investigated further, they found the fund’s assets to have been grossly overestimated.