The NSM Scandal: That’s what it is, and that’s why it matters

The NSM Scandal: That’s what it is, and that’s why it matters

The NSM borrowed NOK 200 million from John Frederiksen’s real estate company. The state says it is unconstitutional. This is the case – simply explained.

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What is the NSM issue?

On Friday 8 December, NSM Director Sophie Nyström resigned with immediate effect.

The reason is an illegal loan agreement worth NOK 200 million between… BreezeBreezeThis is a Norwegian government organization that works to protect information and infrastructure against digital threats. And the company Norwegian monarchy. Norwegian monarchy. This is a large real estate company in Norway that owns many buildings and properties. The company is owned by John Frederiksen.

  • The Department of Justice and Emergency Preparedness said the loan constituted a violation constitution.constitution.This is the most important law in Norway. It determines how the country is governed, and what rights and duties citizens have.
  • Only Parliament can decide how much money a state enterprise will spend.
  • Thus the NSM did something it was not allowed to do. A government institution cannot obtain loans at Norway’s expense.

This is an important issue because it relates to how public funds are used. So the Justice Department says NSM has violated its own rules.

In addition, Justice Minister Emilie Inger-Mehl (SP) described the terms of the agreement “Very unfavorable” For the state:

140 of the 200 million must be repaid at approximately ten percent interest.

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What does an NSM loan cover?

The loan repayment period is 15 years. Depending on the loan agreement, the borrower can however choose to repay the loan at any time.

The government said it would liquidate the loan.

They therefore proposed increasing SSI allocations by $200 million – thus bearing the brunt. Funds must be paid through Oil Fund.Oil Fund.…It is also called the Overseas Government Retirement Fund. Parliament has approved these plans.

Celebrated on borrowed time: Here, then-NSM President Sophie Nyström and Justice Minister Emilie Inger-Mehl (Sp) are pictured at the NSM headquarters in Fornebu in October 2023. The occasion was the inauguration of Applied Cryptography in Fornebu.  On the right is Geir Arild Inge Hellesvik, who heads the Defense Against Advanced Digital Threats division at NSM.

Since the case became known, there has been disagreement about what the Justice Department knew and how it received the details before NSM obtained the illegal loan.

Over the weekend, VG posted it It disputed the documents relating to the NSM loan agreement. They show, among others, the following:

  • On 25 May 2022, NSM sent the draft agreement to the Ministry of Justice and the Ministry of Local Government. And here was the conversation 48 million With return condition Five percent – Which the ministries had no comment on.
  • In November 2023, when the Department of Justice said it became aware of the NSM Final Agreement, the case concerned a loan amount of 200 million. The effective interest rate was approx Ten percent Of these millions, according to Meehl.
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This is what NSM says they spent money on

  • About 85 million of the illegal loan was used to make “special security-related modifications” to buildings owned by the Norwegian real estate company at Snarøyveien 36.
  • About 100 million have been used to update ICT equipment.
  • About $15 million was spent on furniture.

These figures are quoted in the Ministry of Finance suggestionsuggestionA motion is a proposal for a decision to be made in Parliament. They are provided by the government. To Storting.

Read also

Financial Supervision Bureau: NSM did not report the loan agreement – it violated laws and regulations

The Norwegian Security Authority (NSM) did not mention the loan agreement with the Norwegian property company in its 2022 annual accounts.

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NSM responds to National Audit Office: says they did not fail to provide information

The National Security Agency (NSM) says it has not deleted information “relevant to the 2022 annual accounts”.

What is the Norwegian monarchy?

The Norwegian real estate company is owned by billionaire John Frederiksen.

The property company owns the building at Snarøyveien 36 in Fornebu outside Oslo – which NSM entered into an agreement to lease back last year.

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Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

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