“The activities that the Agency for Economic and Regional Growth are responsible for are immensely important and for the agency to continue to develop and do a good job it needs a director general who holds the full confidence of Swedish trade and industry, of Sweden’s citizens as well as the government,” said minister for enterprise, Annie Lööf, in a statement on Monday.

The announcement follows daily Dagens Nyheter’s revelations from the end of July that the agency had spent some 25,000 kronor ($3,680) per employee since January 2010 on luxury dinners, ski trips and spa visits.

On Wednesday last week Swedish enterprise minister Annie Lööf called in the heads of all the state agencies under her control for talks.

“We need to have a discussion. The agencies set their own limits for internal entertainment. It is thus reasonable to have a collective discussion… on what is reasonable, common sense and exemplary,” said Marita Ljung of the ministry for enterprise to news agency TT at the time.

Lugnet will leave her duties at the agency on Thursday.

According to the ministry, Lugnet will now be given different responsibilities within the government offices as she has three years left of her appointment.

TT/The Local/rm