Reporting by PMOI/MEK
Iran, August, 21, 2019–While the Iranian regime enters its final phase under increasing international pressure and domestic discontent, rival factions of the ruling mullahs are revealing more and more of their opponents’ massive corruption cases reaching the highest levels of the regime hierarchy.
On August 17, Jahan-e Sanat, an Iranian newspaper close to the so-called moderate faction that specializes in economic news, described the spread of corruption in the regime. “Corruption has infiltrated the country’s economy in ways that after many years we still cannot be optimistic about improving the situation,” the article reads.
“Who is responsible for this situation?” the read adds, continuing without responding to its own question that, “It is very deliberate that none of the programs are transparent.” Corruption is systematic in the Iranian regime’s ruling hierarchy.
On the same day, Akbar Turki, a member of Iran’s Majlis (parliament), referred to the fact that $14 billion from the foreign currency that the government distributed at state-set prices have been embezzled. “The people’s livelihoods is bad. Making ends meet has become difficult. At least provide a report to the parliament about the $14 billion that were allocated to provide for basic goods and services so that our dear people can use it,” he added.
In Iran, the U.S. dollar is sold and bought at two completely different rates: The state-set fixed price and the fluctuating market price.
The state-set price is 42,000 Iranian rials while the market price for a single dollar is about 120,000 rials right now. In order to help boost the domestic economy and keep prices for essential goods and services in check, the government is supposed to sell these cheap dollars to import basic goods and raw material for Iranian factories.
But in practice, the dollars are distributed among regime insiders and those enjoying corrupt connections, who in turn import luxurious goods or sell the dollars on the black market for at real market value, rounding up enormous profits.
These dollars are earned through the sale of Iran’s crude oil and oil products by the government. Essentially, the Iranian regime is distributing Iran’s wealth and riches among members of its factions instead of subsidizing the poor, creating a perfect example for nepotism.
Part of the latest series of revelations about corruption by Iran’s own officials is the consequence of them feeling that the days of this regime are numbered, and attempting to distance themselves from the current state of affairs.
That is why after years of stealing from the government budget, we see a Majlis member complaining about the status quo.
“We should remember that every year, €100 million are dedicated to this cause. However, according to the document provided to the Agriculture Commission, they’ve received only 130 billion rials in the Persian year of 2016-2017, 800 billion rials in 2017-2018, and 1.43 trillion rials in 2018-2019. Where have they spent the rest?” he asks.
The Arman daily published an article on August 17 referring to a Harvard study conducted years ago:
“When Harvard published a report about Iran, they concluded that it is not possible for Iran to develop, because until one can make more money with less risk through trading property and currency, which is a discreet description for profiteering, no one will take on the trouble of manufacturing and producing.”