He will be able to clean up the country following revelations from the Panama Papers if that is what he chooses to do. The direction of the country, at this point, is based on his choices. It he chooses to make the changes that will benefit the country as a whole, it will be done. The same is true of the contrary.
Following the explosive release of the "Panama Papers," the president of Iceland was forced to step down. His successor is a political newbie named Gudni Johannesson. Though Johannesson now faces the monstrous task of fixing his country, it is exactly the fresh eyes he has as an outsider that will accomplish the goal.
I am not too familiar with what is going on in Iceland other than that they were having an election. But I do know this much not one official can clean up everything. I know this from living in the United States and having so much blamed on the President. Yet it's not only the President who makes the laws in our country, there is also Congress. In fact, they were the ones with the most power as I have found over the years. The President becomes more or less a figure head. I don't know how Iceland handles things, but I do know unless we are talking dictatorship not one individual is completely responsible.
Many people's reputations have been smeared by the leak of the so-called Panama Papers. From presidents to professional athletes, the mere fact that your name is somehow connected to this scandal will tarnish a reputation that would otherwise remain intact. The same is true for Iceland's former Prime Minister, and while his public image has suffered, Iceland as a nation has nothing to be ashamed of.