It is now up to the city council to decide what the report about the biggest scandal in Odsherred will lead to. Politicians will gather on September 16 for an extraordinary meeting, where a major legal investigation will form the backdrop for the far-reaching decisions to be made.
The lawyers' report reveals serious matters at Odsherred Forsyning and Odsherred Varme, including disputed guarantees, loss of control over subsidiaries and possible actions by former management members.
Prior to the meeting, the administration has published clear recommendations.
After months of examining Bech-Bruun's investigation of Odsherred Forsyning, the administration's recommendations are now crystal clear: The former top executives at Odsherred Varme and the auditing giant PwC can look forward to a legal showdown, while the mayor and the majority of the board of directors will go free.
Fatal signatures
In April, subpoenas were issued against a total of ten people with leading roles in the utility company. According to the recommendations, the lawsuit will continue against Odsherred Varme's former CFO Claus Thorsen, CEO Fanny Villadsen and Chairman of the Board Mathias Hansen.
The three are central to the case regarding a surety bond against Nordea, which meant that the municipality effectively lost control of the company and ultimately became the direct cause of Odsherred Forsyning going bankrupt.
According to the administration's recommendations, the three are also to be held responsible for the much-discussed municipal guarantee from October 2023, where the city council – on an insufficient basis of information – was assured that the company had a "strong payment capacity".
PwC is being involved
It is surprising that the auditing firm PwC is now also being involved in the lawsuit. In 2023, PwC had issued a statement that was decisive for the city council's decision to provide a guarantee. The legal investigation indicates that the audit's advice may have caused the municipality a significant loss.
In return, it is recommended that the case be dropped against the other board members, as according to the legal investigation, they had neither knowledge of nor the opportunity to intervene in the crucial decisions.
The mayor will not be prosecuted either. The suspension statement against her should not be extended, the administration believes, as there is no information indicating legal liability.
Officials are investigated
Although the lawyers believe that neither the city council nor the administration can be criticized for their handling of the guarantee cases, it is recommended that further interviews and investigations be carried out of the municipality's officials.
The focus will be on the case preparation leading up to the project approval on April 26, 2022. Not to raise compensation claims, but to investigate whether there has been a breach of good administrative practice.
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