Photo by Art Bicnick

Independence Party city councilperson for Reykjavík Júlíus Vífill Ingvarsson has just announced he is resigning from his post.

RÚV reports that Júlíus made this announcement during City Hall proceedings today. Sources close to the Grapevine say that replacing him will be Independence Party alternate councilperson Hildur Sverrisdóttir, although this has not yet been confirmed.

Júlíus is implicated in the massive Panama Papers leak which began to unfold last Sunday.

According to the documents that have come out in the Panama Papers leak, Júlíus established the company Silwood Foundation in Panama in 2014. This company was intended to take care of his account at the bank Julius Bär in Switzerland. None of this was listed with the city as one of his vested interests.

In the email communications uncovered in the leak, special emphasis is placed on making sure Júlíus’ part in the company is kept as hidden as possible. He has further refused to answer questions from reporters on the matter.

Reykjavík Mayor Dagur B. Eggertsson, in a post on Facebook, added that Progressive city councilperson Sveinbjörg Birna Sveinbjörnsdóttir – who was also implicated in the Panama Papers scandal – has asked for an extension of her maternity leave.

Dagur expressed sadness at these revelations yesterday, RÚV reported.

“It is of course a certain shock for Iceland and for its reputation,” he said. “And it’s bad for the city to be pulled into this case in this way.”

He added that city council will “most definitely” be discussing this matter and what to do about it further.