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Iranian Officials Try To Downplay $3 Billion Corruption Case

Iran International Newsroom
Aug 25, 2022, 14:55 GMT+1Updated: 17:40 GMT+1
Former president Hassan Rouhani and President Ebrahim Raisi in August 2021
Former president Hassan Rouhani and President Ebrahim Raisi in August 2021

An extensive effort is under way in Iran to downplay a major financial corruption case at the Mobarakeh Steel Plant, involving many influential regime insiders.

The details of the corruption scheme reaching $3 billion was exposed by a social media activist after the Iranian parliament published the outcome of an investigation into the case, without naming names.

Although the report presented by the Majles (parliament) vaguely pointed out that many individuals and government organizations were implicated in the case, documents revealed by whistleblowers on social media showed that many regime insiders and organizations affiliated with both leading political factions took bribes from the steel company.

The steel firm paid threw around hundreds of millions of dollars trying to coopt all regime insiders and buy their silence, while its managers engaged in corrupt business practices.

Mobarakeh Steel is a publicly traded company, but government entities hold most shares and managers are political appointees similar to dozens of other government businesses.

Those implicated include political and cultural figures, journalists, publishers, top clerics and their family members, as well as tens of media outlets affiliated with various political factions in Iran.

Semi-officials news agency ISNA reported on Monday that 168 of the 290 lawmakers at the Majles voted for referring the case to the Judiciary. However, various actors have been trying to downplay the significance of the case.

Corruption ‘not systemic’

There has also been a great deal of efforts in the media to prove that corruption is not institutionalized in the government. There is also a lot of sensitivity on the part of government officials including President Ebrahim Raisi toward the term "systemic corruption." Raisi's preferred description is "organized corruption."

Some influential members of Iran's political elite listening to Supreme Leader ALi Khamenei,  April 12, 2022
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Some influential members of Iran's political elite listening to Supreme Leader ALi Khamenei, April 12, 2022

Although many news outlets such as Mehr news agency and government officials have tried to attribute the corruption case to the government of President Hassan Rouhani, the ten-page list that has been published on social media includes current and former officials.

Meanwhile, in a paradoxical statement, the public relations office of the Majles has said the sheer publication of this report indicates the system is not corrupt. Earlier President Raisi had also reiterated that "The system is clean," although in the same statement he called on the Judiciary to deal with those behind the corruption case.

Denial and silence by those implicated

ISNA reported that former Vice President Es'haq Jahangiri, former chief of staff of the Presidential office Mahmoud Vaezinejad, and reformist journalist and newspaper publisher Mohammad Atyrianfar have already tried to deny their involvement in the case. This comes while, seminarians and other top clerics as well as government officials implicated have remained silent.

The Iranian state television, IRIB has also offered brief explanations about hundreds of billions of rials it has received from the Mobarakeh Steel Plant. The IRIB accused the publishers of the report of inaccuracy.

Meanwhile, other reports say the suspension of the steel plant from the Tehran Stock Exchange was reversed after one day. Nonetheless, many investors and small shareholders have said on social media that their investments have been ruined.

A general view of the Mobarakey Stell Plant near Esfahan
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A general view of the Mobarakey Stell Plant near Esfahan

Other hardline media outlets including Kayhan which operates under the aegis of Supreme Leader Ali Khamenei's office and Javan newspaper, the mouthpiece of the Revolutionary Guard, IRGC, have so far remained silent about getting money from the steel plant. Also remaining silent are the social media influencers who have reportedly got hefty sums to turn a blind eye to the plant's inappropriate financial transactions.

Despite the reports about referring the case to the Judiciary, no complaint had been filed until Tuesday according to Judiciary Chief Gholamhossein Mohseni Ejei, ISNA reported.

Discrediting leaked information

The Majles PR Office stressed that the report and figures published on social media are not the final report about the case and thus are not accurate. This comes while according to social media activists, even the head of the investigation committee has received money from the steel plant although there is no independent verification of the accusation.

What is certain is that social media activists, including hardliner Seyyed Mostafa Bijani have said that reformists and hardline conservative are equally responsible for and involved in the corruption case.

Lotfollah Siahkali, the deputy chief of the Majles investigation committee has said that the corruption case at the Mobarakeh Steel Plant is only the tip of the iceberg and corruption is far more widespread in the government. Nonetheless, Majles Speaker Mohammad Bagher Ghalibaf said on Wednesday that the report should have not been published before due legal investigation.

Although some elements at the Majles still insist that the report is genuinely significant and alarming, it appears that many in the Iranian government would like to push the case under the carpet as too many influential individuals and organizations including the Ministry of Intelligence are involved in the case. Their solution appears to be keeping silent until the case is forgotten or superseded by the next controversial issue in the country.

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Water Protests In Iranian City Continue For Second Night

Aug 25, 2022, 10:50 GMT+1

Protests by residents of Iran’s western city of Hamedan, an ancient capital, continued for the second night over a lack of water in the past ten days. 

Videos and photos surfaced on social media showing people chanting slogans against the government and authorities' incompetence for their mismanagement of the water resources in the province. 

Protesters gathered in front of the governor’s office and some iconic landmarks in the city, carrying placards and empty bottles while security forces – backed by special anti-riot forces -- were trying to disrupt the gatherings. Some clashes were also reported during the police standoff with people. 

The crisis which has seriously affected the everyday lives of the majority of the city’s nearly 600,000 population, has been attributed to the critical depletion of the water in the Ekbatan Dam reservoir, with zero inflows.

The popular protests against the government's inefficiency in water supply have also been reported in the city of Kazeroon (Kazerun) in southwestern Fars province.

Iran’s Energy Minister admitted on Wednesday that the main problem of water tensions in Iran is the government's negligence in building water supply infrastructure, whereas Hamedan’s governor had blamed the farmers for the water crisis.

Earlier in the month, a large group of people in the city of Shahrekord in Chaharmahal-Bakhtiari -- a traditionally water-rich region in the Zagros mountains -- held a protest rally after nine days with no drinking water.

In recent years, many cities across the country were scenes of massive protests against the authorities’ mismanagement of water resources or harmful dam building and politically motivated diversion of rivers that have devastated agriculture and drinking water sources, while the Iran has been suffering from drought for at least a decade.

Hardliner Daily In Tehran Says JCPOA Was Bad And Remains Bad

Aug 24, 2022, 22:29 GMT+1
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Iran International Newsroom

The hardliner Kayhan daily in Iran, close to the Supreme Leader, has again attacked the impending nuclear agreement with the United States calling it worthless.

The hardliner paper wrote in an August 23 commentary that "all the claims about the nuclear agreement are lies and no sanctions are going to be lifted as a result of a deal" with Washington.

The Kayhan repeated its own rude rhetoric about the West in this commentary, calling Europe "a dog trained by the United States" and claimed that Europeans have turned to burning logs [as a result of fuel shortage caused by the war in Ukraine] and consuming rotten food [as a result of food shortage for the same reason]."

While parties are still negotiating to revive the 2015 agreement, JCPOA, Kayhan lashed out at its domestic supporters, mainly Iranian reformists, and wrote: "Weren't they saying every day that Iran was suffering a $100 million loss per day as the revival of the JCPOA was delayed? What has the Iranian economy gained after all that hurry to strike a deal?"

The hardliner daily accused the supporters of a deal with the United States of “throwing the country into a bottomless well."

Meanwhile the daily attributed the closure of several Iranian industrial plants to the nuclear deal while Iranian experts have said repeatedly that those firms were shut down after they were confiscated by the government and because inefficient government management pushed them into bankruptcy and closure.

Many politicians and pundits in recent days have argued that a nuclear deal is not a magic wand that will quickly fix Iran’s economic crisis. They pointed out that financial corruption and the government's inefficiency are responsible for up to 80 percent of the economic crisis in Iran and no breakthrough will happen unless those two problems are effectively tackled.

Incidentally, a report published on the same day in Didban Iran website in Tehran noted that more than half of government employees in Iran have been hired based on their connections, adding that more than 45 percent of government employees in Iran are inefficient as they lack the right skills.

Meanwhile, reformist politician Mehdi Ayati told Nameh News website in Tehran on Tuesday that the revival of the JCPOA will definitely have a positive impact on Iran's economy, but added that the agreement should facilitate Iran's ability to economically benefit from it.

In another development, Iran's nuclear Chief Mohammad Eslami said that "Iran will not accept Israel's positions as the agenda of the International Atomic Energy Agency (IAEA)." Reacting to safeguard questions raised by the IAEA and European and US negotiators' insistence on the need for Iran to respond to questions about enriched Uranium traces in several locations, Eslami said: "These accusations are not new, and Tehran has been responding to them for 20 years now." But did not say why Iran has failed to convince the IAEA.

In one of the latest developments regarding a possible agreement, Iran's Security Chief Ali Shamkhani told the press in Tehran that the Supreme Council of National Security which he heads, has had no resolution yet about the negotiations. He added that a possible agreement will be first approved by the SCNS before being put to vote at the parliament (Majles).

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Attorney Mohammad Moghimi said on Twitter on Wednesday that his former client Farhad Salmanpour Zahir has managed to "escape" from the prison.

“In a bold and clever move, he escaped from Evin prison with a very complex, technical, and stylish act after misleading” intelligence officers -- Moghimi said. 

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Some Politicians Delayed Revival Of Nuclear Deal – Iranian Lawmaker

Aug 24, 2022, 14:40 GMT+1

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Jalil Rahimi Jahanabadi, member of the Iranian parliament’s foreign policy and national security committee, told local media that the same people who were tearing up the JCPOA in recent past now completely agree with its revival.

Rahimi was implicitly referring to hardliners who during the presidency of Hassan Rouhani opposed the agreement his government had concluded with world powers in 2015.

The lawmaker said that opposition to the deal was driven by political motives. He retorted that some politicians “did not want the previous government to restore the agreement. They wanted to be the ones to do it.”

Rahimi, a Sunni Muslim and a two-term parliament member, told the former opponents of JCPOA that they have to answer to the people as “why they did that to their livelihood.”

The US left the JCPOA in 2015 and imposed crippling sanctions on Iran.

Tehran began talks in April 2021, and could have reportedly concluded an agreement to revive the deal, but it was delayed until presidential elections in June 2021 when it was all but certain that hardliner Ebrahim Raisi would be elected.

Five months after the election, the new government dominated by the hardliner camp returned to negotiations in Vienna.

Iran’s Government Says It Won’t Support Artists Critical Of Regime

Aug 23, 2022, 11:36 GMT+1

Iran’s deputy culture minister for artistic affairs says the government only supports artists who promote the Islamic Republic’s values and policies. 

In an interview with the government’s official news website IRNA on Tuesday, Mahmoud Salari said "I am not a representative of the artists, I am a representative of the government of the Islamic Republic."

He noted that the artistic department of the ministry is not responsible for artists who seek their own artistic values, adding that the department does not back artists who would act against the policies of the Islamic Republic. 

The government’s money is only for those artists who work in line with the charter of the Islamic arts devised by the founder of the Islamic Republic Rouhollah Khomeini, he elaborated, adding that "anyone who wants to insult the Islamic Republic should take money from the people who ask them to do so."

Films, music and books go through a rigorous censorship process in Iran and often have to change and re-write segments to be accepted by religious-political censors. In Iran’s closed economy, most artistic creations also depend on government financing.

On Saturday, the minister of culture and Islamic guidance Mohammad-Mehdi Esmaili threatened filmmakers and actors with a work ban if they criticize Islamic Republic entities and officials, adding that Iranian films cannot participate in foreign film festivals if they are not authorized to be shown in Iran.

Iran’s Intelligence Minister Esmail Khatib also warned government’s critics on Thursday against writing statements and open letters to criticize the current situation in the country.