Blogger Gunnar Smarason writes a disturbing piece on the prosperity of N1, gas station and convenience store empire. I just don’t know why none of the major media has picked up on it.
According to Gunnar, N1′s third quarter report states that the company’s earnings have grown threefold before tax, interests and amortization, compared to last year.
This during the heaviest recession ever to hit Iceland. How could it be? This is surely business prowess to celebrate with “Businessmen of the Year” awards.
The answer is in the increased margin, the high price consumers are made to pay. The company has used the uncertain times to its benefits, unnecessarily charging more.
Gunnar says that a company which can hike its prices that high, without it affecting sales is in effect a monopoly. Which N1 has strived to become, buying up every little roadside gas station and auto service related business it could get its hands on.
It was easy for the chairman who oversaw the expansion to get financing from Glitnir. Glitnir also let N1 borrow handsomely to buy a share in Icelandair so it could get petroleum business from the airline. Einar Sveinsson, Glitnir’s former chairman of the board is also on the board of N1 you see. Within two years, Glitnir had taken back the shares and written off the loans.
Also on the board of N1 is Gunnlaugur M. Sigmundsson, Progressive Party leader’s Sigmundur David Gunnlaugsson father.
And said CEO who oversaw the expansion of N1, wait for it…Independence Party chairman Bjarni Benediktsson.
Now who said that they were in Althingi to look out for the interests of the Icelandic public?
And what was that about the connection between Icelandic businesses and politicians?
Ms. Joly? Someone? Help us!
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Bert Pachetta
10 months ago
When you have most of the nation bending over you really need N1 and it´s lube!
Blubber
10 months ago
Icelandic mainstream media not doing their job? What a shocker.