Posted on 01/26/2011 4:00:34 PM PST by WesternCulture
Ikea founder Ingvar Kamprad, considered one of the wealthiest people in the world, controls the company through a secret foundation worth 100 billion kronor ($15.34 billion), according to a Sveriges Television (SVT) report.
Despite the revelation, the company and Kamprad's image will probably not be affected, according to media advisors.
Kamprad controls the enterprise through a holding company called Inter Ikea by way of a secret foundation in Liechtenstein. The foundation is currently worth about 100 billion kronor, according to the latest episode of SVT's Uppdrag granskning investigative news programme, set to air on Wednesday evening.
Ikea is controlled through a complex network of different types of companies and foundations.
According to Uppdrag granskning, Kamprad, who has lived in Switzerland for over 30 years, created the foundation Interogo in Liechtenstein in the spring of 1989. The foundation is managed by the law firm Marxer & Partner.
In an email from Ikea sent to the TT news agency, Kamprad admits that the Interogo Foundation in Liechtenstein exists and that it owns Inter Ikea Holding SA, which in turn owns Inter Ikea.
"Interogo Foundation is a company foundation whose only goal is to invest in the expansion of the company business and secure its long-term survival. In other words, the assets of the Interogo Foundation are held as financial security and are only used if Inter Ikea has financial difficulties," wrote Kamprad.
"The assets can also be used to support individual Ikea dealers who have financial difficulties or for philanthropic purposes. Interogo Foundation is controlled by my family and is administered by a board of directors consisting only of outside representatives." he added.
Liechtenstein's rules and regulations are extremely closed. And the bylaws of the foundation clearly state that documents about the foundation cannot be shown to outsiders or foreign authorities.
Proceeds can be paid out through grants to individuals or organisations that work in architecture, as well as interior design and consumer products. Interogo currently has 100 billion kronor in equity, acting as a hidden fortune for Kamprad.
The regulations also clearly stipulate that the Kamprad family has total control over the executive board of Inter Ikea, which is registered in the Netherlands.
For many years, Kamprad has said that his influence over the company is limited and that a Dutch charitable foundation, Stichting INGKA Foundation, directed it.
However, it is Inter Ikea, which the Kamprad family controls through Interogo, that owns the rights to the Ikea brand, its concepts and all of the products sold in its stores around the world.
A large part of Inter Ikea's proceeds comes from the 3 percent in royalties on all sales that every Ikea store must pay to the parent company for the right to use the concept. These payments are tax-free and are amount to several billion kronor per year.
Ikea currently operates in 38 countries. In Sweden, the arrangement amounts to 100 million kronor a year in lost taxes, according to the report.
Through advanced tax planning, the company has implemented the system of royalty payments to dodge tax payments, according to Uppdrag granskning's report, which uncovered the jumble of companies within Inter Ikea registered in the Netherlands, Belgium, Luxembourg, Switzerland, Curaçao, the Virgin Islands and Cyprus.
Despite the revelations, media advisor Paul Ronge doesn't think the information will negatively affect the image of Ikea and Kamprad.
"There are extremely few brands that are considered icons in Sweden, but Ingvar Kamprad is one of them. If someone decides to go after Kamprad, it must be with something that will cause people's jaws to drop," he said.
During his media training sessions, Ronge often compares Kamprad with beloved Swedish children's author Astrid Lindgren and actor and director Hasse Alfredson.
"Ingvar Kamprad has been perhaps the most skillful brand builder in Sweden as he has built up his brand over a long, long time. That makes for a very strong immune system during crises," he said.
"The key issue is whether people think this is so remarkable, shocking and new that they are prepared to reconsider the image of Kamprad that the majority of the Swedish people have held over the last 40 to 50 years," Ronge pointed out.
When a reporter from the programme tried to confront Kamprad with the information, he became angry and asked, "How can you ask such idiotic questions? Are you crazy?"
"It is deplorable that Ingvar Kamprad had an outburst like that. It is so unnecessary. He did not have to end up in such a situation. One should not react emotionally and in the presence of journalists to show yourself getting so pissed off," said Ronge.
Ikea Sweden plans to comment the revelations presented by Uppdrag granskning on Wednesday and early on Thursday morning, Ikea Sweden will host a chat on its website, where CEO Peter Agnefjäll will answer questions.
- Yes, since long, this has been one of the major hinders to Swedish/European economic growth.
Luckily enough, a genuine insight into the craving, yet vulnerable nature of entrepreneurship, business incentives and economic progress has evolved among ordinary people here in Sweden.
Once, especially during the 1970s-1980s, we took the success of Electrolux, SAAB, ABB etc for granted, believing these companies would continue to eternally create prosperity. Today, Swedes in general know better.
In order to drive a new Volvo, own a nice house and a summer home on top of that, something more has to be accomplished than calling in sick each Monday and voting for the Social Democrats every fourth year.
Someday, all of the World will realize Scandinavian Socialism is a mere illusion just like most Scandinavians already have.
Regardless of IKEA furniture, all nations need more of Ingvar Kamprads and less of Socialism.
Nordic companies like Nokia, Ericsson, Skype, Spotify and so on mark the beginning of a golden age of North European Capitalism.
Swedish GDP growth is presently at an “Asian” level (nearly 7% counting from last quarter of 2009 to last quarter of 2010) and once the Vikings get going the World will never be the same. Successfully implementing the sound economic policies of today's Sweden is not about Viking genes. World economy isn't a Wagner opera. All it takes is willpower, patriotism and work ethics. This "new" Scandinavian spirit can be copied and is already inspiring other nations into developing a more responsible approach to the economic future of their countries. For instance, the Germans have been wise enough to learn from our mistakes as well as our solutions. German work ethics is not a thing of the past and few people on Earth, Americans included, hate taxes like the Germans do.
Both Europe and America today encounter major threats.
All the same, just like Ronald Reagan, I am convinced we Westerners live in the strongest and most healthy culture History has ever seen; a culture of free speech, free trade and free enterprise.
God bless America, God bless Europe, God bless Freedom!
Don’t count on it. Our peasants are as dumb as peasants anywhere. All societies have varying cultures within them. The culture of poverty perpetuates itself because one of it’s tokens is that they are there through no fault of their own and greedy capitalists take advantage of them. People like Obama fool them all the time.
Unfortunately, the stuff they sell might as well be made in China.
“Don’t count on it. Our peasants are as dumb as peasants anywhere.”
- I might be wrong, but judging from my impressions of and ecounters with the US, I simply refuse to believe Obama will get reelected.
All nations fail sooner or later, like my Sweden did in our Socialist past during 1970-1990. However, when a strong nation truly rises up, be it small like Sweden or not, the Earth will quake.
Yes, we all face stupidity and lies sooner or later in life and as nations we sometimes realize severe mistakes have been made.
What to be said?
I’m a Viking. Often I win fights, but I don’t always win the round.
However, if I get knocked down in a silly street fight, I gladly rise up for another round and in the end I’ll triumph. Get it?
Life isn’t Martha Stewart, it isn’t a perfect holiday to France and neither is it a tinseling Hollywood production.
BUT; life is freedom and God has given you an assignment:
- Make the most out of your free will.
What’s the secret society called? ODESSA?
Why should I care?
Sweden is a socialist cesspool.
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