In a sign of high-level concern over corruption, Iran’s Prosecutor General has spoken of illegal activities by officials in all three branches of the Government and in the financial sector.
The declaration by Gholam Hossein Mohseni Ejei (pictured) follows last weekend’s execution of billionaire Mahafarid Amir Khosravi, a central figure in the $2.6 billion bank fraud case revealed in September 2011.
Ejei said those involved in corruption included “individuals at the most senior executive levels in banks, a deputy of the head of the judiciary branch, the head of the intelligence protection unit of the judiciary, and a number of other Majlis (Parliament) representatives”. Of the more than 500 individuals investigated, more than 200 of them were among senior executives and managers in banks, the President’s office, the Majlis, and the judiciary.
Following Ejei’s remarks, Speaker of Parliament Ali Larijani said, “It is the duty of the judiciary to take preventive measures regarding corruption.” He said the Prosecutor’s statement was “only the beginning”, with more hearings to be held if necessary.
Iran’s political establishment was rocked by a series of corruption allegations in the second term of the Ahmadinejad Government. Disputes rose to the point where Ahmadinejad and the Revolutionary Guards accused each other of illegal activity, and the President — on the floor of Parliament — said that the Larijani family was involved in corrupt practices.
Meanwhile, more than 50 people were convicted of involvement in the $2.6 billion bank fraud. Four were condemned to death. Iran is still seeking the extradition of the head of Bank Melli, Mahmoud Reza Khavari, who fled to Canada, to serve a lengthy sentence.
The judiciary has also investigated Ahmadinejad’s 1st Vice President, Mohammad Reza Rahimi, for involvement in a major insurance fraud.
Billionaire Babak Zanjani was arrested last autumn on charges of fraud linked to his companies receiving money from the Social Security Funds, led by senior Ahmadinejad advisor Saeed Mortazavi. Zanjani is also accused of taking more than $2 billion from the Oil Ministry.
