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Norwegian minister in hot water over breach of ethics rules

Norway’s university minister has admitted a violation of government ethics regulations when purchasing shares in an arms manufacturer.

Published: 21 July 2023 16:50 CEST

Pictured is Norway's parliament.

Ola Borten Moe faces a challenge in hanging onto his job. Pictured is Norway's parliament. Photo by Marco Süssi on Unsplash

Minister for Research and Higher Education Ola Borten Moe of the Centre Party has admitted a breach of the Norwegian government’s integrity rules and share trading regulations when purchasing shares in the arms manufacturer Kongsberg Gruppen.

Moe is said to have attended a government meeting about a multi-billion dollar contract for ammunition manufacturer Nammo, in which Kongsberg Gruppen owns an indirect 25 percent stake. A week prior, he had purchased shares for more than 400,000 kroner.

Impartiality guidelines were also broken when he took part in a government meeting in March, which increased the framework for the contract with Nammo. Moe has said that other share purchases in recent years have broken government guidelines.

“This is an incredibly embarrassing case. It is a serious matter. This means that my integrity as a minister can be questioned. It is a situation I would very much like to have avoided, and I apologise for it in the strongest possible terms,” Borten Moe told public broadcaster NRK.

The minister has denied that the share purchase amounted to insider trading. Norway’s economic crime unit, Økokrim, has said it will investigate any potential wrong doing.

“I think it is completely natural, and welcome, that Økokrim asks the questions they think it is necessary to ask. But I have a completely clear conscience about it,” he added.

Government ministers in Norway are prohibited from trading or owning shares, which could weaken confidence in the minister, the government or ministries.

Moe faces a fight to hang onto his job as his admission has been met with plenty of scrutiny from opposition, particularly as this is the third case of a minister facing ethics allegations in recent weeks.

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What's been added to Norway's revised national budget?

Norway will tap its oil fund for 1.2 billion kroner in extra funding, in addition to the public spending announced when the revised budget for 2024 was unveiled earlier in the spring.

The country’s minority government, comprised of the Labour Party and Centre Party, has turned to the Socialist Left Party to secure a majority for its budgets.
During the negotiations to secure support, new policies are typically put forward by the Socialist Left Party.

The budget was agreed on Monday and will pass through parliament before summer recess.

“It has been crucial for us that the revised national budget should give people throughout Norway a better everyday economy, ensure safety and predictability for people and business,” fiscal spokesperson Ole André Myhrvold from the Center Party said.

Families will see child benefits increased for all children over six. This support will increase 256 kroner a month or 3,072 kroner per year. Once the budget has gone through parliament, payments will be increased from September 1st.

Younger people will also benefit from cheaper dental bills. The cost of dentistry will be heavily subsidised, 75 percent for 25-and-26-year-olds.

More student accommodation would also be built. Student organisations have warned recently that too many pupils at universities have been forced into the private rental market.

The country’s state housing bank would also receive more money, tenants’ rights would be strengthened, and housing support would be increased. The parties have said that a housing package will help get more people onto the property ladder.

READ ALSO: Everything you need to know about the Norwegian State Housing Bank

Significant investment will be made in offshore wind. The parties have promised to invest at least 35 billion kroner in offshore wind. The money will be used to finance and develop 5-10 TWh of energy. The oil industry will have taxes increased to pay for the investment in wind farms.

Several opposition parties have praised the budget for increasing child support. However, the main opposition party, The Conservative Party, was critical of the use of oil money.

“Despite the fact that the government and Socialist Left Party have turned the revised national budget into a completely new state budget, there are no proposals to give Norway more to live on after oil,” the Conservative’s fiscal policy spokesperson Tina Bru has said.

“The use of oil money is increasing, and taxes are still at a record high level. This is not a budget for the future,” she added.

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