Initially heralded as a move to reduce government intervention in the economy and promote market liberalization, the policy’s trajectory over the last two decades reveals a darker reality. Far from democratizing economic opportunities, privatization in Iran has largely benefited a select few within the ruling elite and their associates, exacerbating inequality and fostering corruption.
This shift in asset ownership from public to private hands has not been a transition to a free market but rather a reassignment of wealth to those closely linked with the Supreme Leader’s Office (the Beyt) and the Islamic Revolutionary Guard Corps (IRGC). Major private companies are often owned by affluent families with strong political ties, and several privatization initiatives have favored companies closely connected to governmental figures.
The process of privatization under the mullahs’ rule has effectively meant the distribution of national assets to individuals connected to power centers at minimal costs. This has led to numerous economic setbacks, as seen in the closure of large factories handed over to state officials lacking necessary expertise.
Delving into #Iran’s Corruption Chronicles – Part 1https://t.co/3uRDWFAqxD
— NCRI-FAC (@iran_policy) December 18, 2023
For instance, the Ardabil Meat Company, initially valued at over $10 million, was sold for just $400,000 to Abdullah Pour-Hosseini, head of the Privatization Organization, who played both buyer and seller roles in this transaction, causing a loss of $9.6 million. Similarly, the Haft Tapeh Sugar Company, worth over $260 million, was sold for $90 million, resulting in a $170 million profit for the government entity that acquired it.
In Kermanshah Province, three silos, worth $15 million, were sold for a mere $4 million. The Tabriz Machinery Manufacturing Company, valued at $500 million, astonishingly went for just $6 million. These transactions and several others, like the sales of Alumina Al-Mahdi and the Kermanshah Refinery, not only represent massive financial losses but also raise serious questions about the legality and ethics of such deals.
The case of Moghan Agriculture and Industry Company is particularly striking. Valued at 2.7 trillion tomans ($900 million), it was sold for 1.75 trillion tomans ($400 million) to Mirali Ashraf Abdollah Purihosseini, then-head of the Privatization Organization, mirroring a pattern of internal transactions.
State-run Tejarat-e-Farda’s March 2, 2018, report criticized the privatization implementation, suggesting that it deviated from a market-oriented approach. The report argued that privatization had become a tool for auctioning national assets, expanding the influence of power-connected groups, and fostering corruption.
These incidents highlight a larger issue within Iran’s economy, heavily influenced by the IRGC and financial empires tied to the Supreme Leader’s office. The full extent of embezzled wealth from the Iranian people remains obscured, as investigative journalism and regulatory bodies are tightly controlled by intelligence and security apparatuses under Supreme Leader Khamenei’s influence.
MEK Iran (follow us on Twitter and Facebook), Maryam Rajavi’s on her site, Twitter & Facebook, NCRI (Twitter & Facebook), and People’s Mojahedin Organization of Iran – MEK IRAN – YouTu
