Hafskip
Encyclopedia
Hafskip was Iceland
's second-largest shipping line before its collapse which became a national scandal
.
The firm had fallen deep into debt
and might have sunk quietly had it not been for its ties to Iceland's finance minister
, who was its former chairman and still a shareholder
. Instead, its insolvency in late 1985 became a fuel for rival politicians, and ignited a criminal investigation which lasted six years.
Björgólfur Guðmundsson
and other executives from Hafskip had been detained and later charged with 450 criminal counts, from embezzlement
to fraud
. Gudmundsson was found guilty on five counts of minor bookkeeping
offenses and sentenced to 12 months' probation
.
There was also another scandal with the same company that happened in 1978. But the 2nd incident was larger.
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
's second-largest shipping line before its collapse which became a national scandal
Scandal
A scandal is a widely publicized allegation or set of allegations that damages the reputation of an institution, individual or creed...
.
The firm had fallen deep into debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
and might have sunk quietly had it not been for its ties to Iceland's finance minister
Finance minister
The finance minister is a cabinet position in a government.A minister of finance has many different jobs in a government. He or she helps form the government budget, stimulate the economy, and control finances...
, who was its former chairman and still a shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
. Instead, its insolvency in late 1985 became a fuel for rival politicians, and ignited a criminal investigation which lasted six years.
Björgólfur Guðmundsson
Björgólfur Guðmundsson
Björgólfur Guðmundsson was the chairman and former owner of West Ham United FC. Björgólfur was Iceland's second businessman worth more than a billion dollars — his son, Björgólfur Thor Björgólfsson being the first. He was ranked by Forbes magazine in March 2008 as the 1014th-richest person in the...
and other executives from Hafskip had been detained and later charged with 450 criminal counts, from embezzlement
Embezzlement
Embezzlement is the act of dishonestly appropriating or secreting assets by one or more individuals to whom such assets have been entrusted....
to fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
. Gudmundsson was found guilty on five counts of minor bookkeeping
Bookkeeping
Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, receipts and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting. The accounting process is usually...
offenses and sentenced to 12 months' probation
Probation
Probation literally means testing of behaviour or abilities. In a legal sense, an offender on probation is ordered to follow certain conditions set forth by the court, often under the supervision of a probation officer...
.
There was also another scandal with the same company that happened in 1978. But the 2nd incident was larger.
See also
- Corporate scandalCorporate scandalA corporate scandal is a scandal involving allegations of unethical behavior by people acting within or on behalf of a corporation. A corporate scandal sometimes involves accounting fraud of some sort...
- The MV RangaRanga (ship)The motor ship Ranga was a 1,586 tonne container ship owned by the Spanish shipping company, Naviera Ason SA, but on charter to the Icelandic shipping company, Hafskip. She was formerly named Berta de Perez, but her name was changed at sea to Ranga, due to the Icelandic charter. The Ranga was on...
, a ship chartered to Hafskip, but wrecked on the Irish coast in 1982