Norwegian Mayor's Dual Role Sparks Conflict of Interest Concerns

Norway's national association of local and regional authorities (KS) strongly advises elected officials to avoid serving on the boards of municipal companies, citing potential conflicts of interest. However, in Fyresdal, a municipality in Vest-Telemark, the mayor has held a dual role as chairman of the company that sold land for a major data center since the company's establishment.

“

Our advice has been that it is simpler to be a pure owner rather than mixing roles between owner and operator of companies.

Erik Skjervagen, the mayor of Fyresdal and a member of the Labour Party (Ap), is in his fifth term as mayor. He also serves as the chairman of Myldr Energipark, the municipal company that sold a 160-acre plot to the American data center company Edgeconnex. Skjervagen has been chairman of Myldr since its founding in 2021, while he has held the mayoral chain for the past 15 years. Myldr Energipark sold subsidiaries owning the land to Edgeconnex in December, generating a profit of approximately 110 million kroner, with 80 million kroner transferred to the municipality's budget.

“

As mayor, you should be very cautious about taking on board positions in companies.

Martin Skramstad, a senior advisor at KS, emphasized the importance of clear roles. "Our advice has been that it is simpler to be a pure owner rather than mixing roles between owner and operator of companies," Skramstad told E24. KS's handbook for mayors explicitly states that mayors should be very cautious about taking on board positions in municipal companies. "As mayor, you should be very cautious about taking on board positions in companies," the handbook advises, referring specifically to municipally owned companies. Skramstad added, "We are concerned that the municipal council must ensure it is a good owner. Holding a role as chairman or board member could make you disqualified in the handling of matters in your own municipality."

“

We are concerned that the municipal council must ensure it is a good owner. Holding a role as chairman or board member could make you disqualified in the handling of matters in your own municipality.

Despite KS's recommendations, Mayor Skjervagen disagrees with the assessment. "We do not take that into account, as you can probably understand," Skjervagen stated. In addition to his role at Myldr, he is also chairman of Vest-Telemark Kraftlag Holding and Tnett (Telemark nett). "I am chairman of all the major power companies in Vest-Telemark, and I have been for ten years," he said. Skramstad clarified that he was speaking generally and not about the specific situation in Fyresdal, but reiterated that serving on company boards can create disqualifying situations for elected officials.

“

We do not take that into account, as you can probably understand.