Sistani: Iraq Could Face ‘Partition’ without Reform

Grand Ayatollah Ali al-Sistani, the spiritual leader of Iraqi Shias, warned on Thursday that Iraq could face “partition” and other dire consequences if real reform is not carried out.

“Today, if true reform is not realized by fighting corruption without mercy and realizing social justice on different levels, it is expected that circumstances will become worst that before, Sistani said in a written statement. “(Iraq) could be dragged to… partition and the like, God forbid.” (AFP, 20 August)

Without rampant corruption, especially in the security forces, and misuse of power by top officials, “the Daesh terrorist organization would not have been able to control a large part of the territory of Iraq,” Sistani added, using an Arabic acronym for ISIL.

Many Iraqi politicians, Sistani said, “did not take the overall interests of the Iraqi people into consideration, and were instead concerned with their personal interests, and factional, sectarian and ethnic concerns.” (AFP, 20 August)

Even with popular support and Grand Ayatollah Sistani’s backing, the entrenched nature of corruption and the fact parties across the political spectrum benefit from it make changes recently proposed by Prime Minister Abadi extremely difficult, AFP said.

File photo: Grand Ayatollah Ali al-Sistani, the spiritual leader of Iraqi Shias (AFP)

Iranian President Warns against Corruption

Iranian President Hassan Rouhani has spoken out against corruption in Iran and warned that it is endangering the Islamic Revolution.

In a televised speech, Rouhani said bribes once “given under the table is now being given on the table.” He called on Iranians to “apply all our power in fighting corruption.”

“The continuation, the deepening and the expansion of corruption is endangering… the Islamic Revolution,” Rouhani said. (IIRB/BBC, 8 December)

In a not-too-veiled criticism of the IRGC, Rouhani said monopolies that control rifle production to advertising were the cause of corruption. IRGC has become a major monopolistic power, controlling a third of the country’s economy, and is widely believed to engage in illicit and black-market activities.

UPDATE: A more pointed attack on IRGC from no less than the president of the Islamic Republic:

“With the accumulation of power in one institution, corruption is created…If guns, money, newspapers, websites and propaganda is concentrated in one place there will certainly be corruption. So the world has become wise to separate these powers…” Rouhani said.

Photo credit: BBC

50,000 ‘Ghost’ Soldiers Discovered in Iraqi Army

An investigation by the office of Iraq’s new prime minister, Haidar al-Abadi, has uncovered the existence of 50,000 “ghost soldiers,” equivalent to almost four Iraqi army divisions.

“Over the past few weeks, the Prime Minister has been cracking down to expose the ghost soldiers and get a handle on the problem,” said Rafid Jaboori, the spokesman for the PM. (AFP, 30 November)

The investigation started with a thorough headcount during the latest salary payment process.

“There are two kinds of ‘fadhaiyin’,” a senior officer told AFP, using a word which means “space men,” which refers to the fictitious soldiers on the payroll.

“The first kind: each officer is allowed five guards. He’ll keep two, send three home and pocket their salary or an agreed percentage,” the officer told AFP. “Then the second and bigger group is at the brigade level. A brigade commander usually has 30, 40 or more soldiers who stay at home or don’t exist.”

Meantime, Prime Minister Abadi said today in Baghdad that he will not go ahead with planned increase in taxes and customs duties before reviewing the system and eradicate corruption. Otherwise increases go to corrupt pockets, Abadi added.

Photo credit: An Iraqi soldier in the recaptured town of Jurf al-Sakhr; 27 October 2014 (Haidar Mohammad Ali/AFP)

Iranian Businessman Executed over $2.6B Bank Fraud

Mahafarid Amir Khosravi, also known as Amir Mansour Aria, an Iranian billionaire businessman at the heart of a $2.6 billion state banking scandal, was put to death at Tehran’s Evin prison today. (IRIB/AP, 24 May)

The fraud, for which Khosravi and three others defendants received death sentences, involved using forged documents to get credit at Iran’s Bank Saderat to purchase assets including state-owned companies like major steel producer Khuzestan Steel Co. The bank fraud reportedly began in 2007.

Khosravi's business empire included more than 35 companies from mineral water production to a football club and meat imports from Brazil, AP reported. 

A total of 39 defendants were convicted in the case. Four received death sentences, two got life sentences and the rest received sentences of up to 25 years in prison.

The trials raised questions about corruption at senior levels in Iran's tightly controlled economy. Mahmoud Reza Khavari, a former head of Bank Melli, Iran’s national bank, escaped to Canada in 2011 after he resigned over the case.

File photo: Mahafarid Amir Khosravi speaks at his trial in a court in Tehran, Iran. 18 February 2012. (Hamid Foroutan/ISNA/AP)

Rouhani Defends Negotiations for Nuclear Agreement

Iranian President Hassan Rouhani today defended nuclear negotiations with the West, insisting that a comprehensive agreement would benefit the majority of Iranians.

“The people are very happy about the sanctions being lifted,” Rouhani said during a primetime interview on state TV. (IRNA/AFP, 29 April)

Rouhani also said better relations with the United States were possible.

“Relations (with the U.S.) have been and will be difficult,” but it was possible that “tensions... can be reduced.”

Rouhani condemned those who profited from the sanctions while ordinary citizens suffered.

“A small, fringe group is very angry about it (nuclear agreement and lifting of sanctions) because they will suffer losses,” under a nuclear deal, Rouhani said

He singled out Babak Zanjani, who reportedly traded state oil through private channels with the support from IRGC.  Rouhani said Zanjani “pocketed $3 billion.”

File photo: Iranian President Hassan Rouhani (AFP) 

Ahmadinejad’s First VP Indicted for Bribery and Embezzlement

Former Iranian President Mahmoud Ahmadinejad's First Vice President Mohammad-Reza Rahimi was indicted today for his alleged role in several high-profile bribery and embezzlement cases that also spill into Turkey, as well as Central and East Asia. Rahimi has denied all charges. (IRNA/Reuters, 17 March)

File photo: Former Iranian First VP Mohammad-Reza Rahimi (IRNA)

Zarif in Turkey

Iranian Foreign Minister Javad Zarif today arrived in Ankara for a one-day visit to Turkey. Zarif held talks with Turkish Prime Minister Recep Tayyip Erdogan and the country’s foreign minister, Ahmet Davutoglu.

Davutoglu said in a joint press conference with Zarif that Prime Minister Erdogan will visit Tehran before the end of January and Iranian President Hassan Rouhani will also visit Turkey in few months.

The two foreign ministers said their countries will increase trade and continue improving their bilateral relations. They also expressed hope to narrow their differences on Syria.

“There are some differences between Iran and Turkey but they will be eliminated by mutual understanding. Our eventual objective is to bring peace and stability to Syria,” Zarif told reporters.

The two sides were expected to discuss the on-going government corruption scandal in Turkey that involves Iran in the so-called “gas-for-gold” scheme, with Iran exporting natural gas to Turkey in return for gold as payment to skip international sanctions. In the process, huge amounts of cash have been paid as bribes to senior Turkish officials and their families, forcing the resignation of three senior ministers. An Iranian national, Reza Zarrab, is also under Turkish custody for leading the “gas-for-gold” operation in the country

Photo credit: Iranian Foreign Minister Javad Zarif (L) with Turkish Prime Minister Recep Tayyip Erdogan. Ankara, 4 January 2014. (Fars News Agency)

Zanjani, Iranian ‘Sanctions Broker,’ Arrested

Babak Zanjani, Iranian billionaire “sanctions broker” was arrested in Tehran today. Mohsen Ej’ie, Iran’s Prosecutor General confirmed Zanjani’s arrest. (Fars News Agency, 30 December)



On Saturday, President Hassan Rouhani ordered the investigation of “sanctions profiteers” in Iran. The term, or “sanctions brokers,” is referred to people or organizations that take advantage of the special concessions and privileges given to them to defy trade sanctions, but in the process enrich themselves normally through corruption or illegitimate income.


The specific charges against Zanjani have not been disclosed. A majlis investigating committee reported this week that he owes billions of dollars to the Ministry of Oil. Zanjani was involved in “oil-for-cash” schemes, selling Iranian crude in black markets for cash.

Zanjani was also implicated by Reza Zarrab, the Iranian sanctions broker who was arrested last week in Istanbul, as his “boss” and contact in Tehran. The two reportedly were involved in “gas-for-gold’ scheme that is in the heart of the current government corruption scandal in Turkey.



File photo: Babak Zanjani (BBC)



To read about Zanjani’s debts to Oil Ministry, please click here.


To read about Rouhani’s investigation order, please click here.

To read an account of “gas-for-gold” scheme, please click here.

CBI Denies Zanjani Has Returned Oil Money – Growing Controversy

The Central Bank of Iran (CBI) announced today that Babak Zanjani, the notorious “sanctions broker” involved in the “private” sale of Iranian crude oil in the black market, has not returned any of the sales proceeds to the oil ministry’s account at CBI, Fars News Agency reported today. The central bank had said Zanjani owes the oil ministry billions of dollars. Zanjani had told reporters last week that he has repaid all that he owed.

The semi-official Fars News Agency reported today that a document presented by Zanjani to an investigating committee of Majlis showing that he had deposited funds at CBI was “forged.” The bogus document reportedly showed the funds were transferred to CBI through the central bank of Tajikistan. (Fars News Agency, 28 December)

Zanjani had become a successful “sanctions broker,” or what President Rouhani today called “sanctions profiteer.” He is the owner of a private company that had received huge allotment of Iranian crude oil to sell in the black market for cash. His company is believed to have close ties with the IRGC, who had received the original export permit from the oil ministry.

Rouhani today ordered an immediate investigation into sanctions profiteering. He said those who have taken advantage of special (anti-sanctions) concessions and privileges to enrich themselves would be identified and punished.

Zanjani has also been implicated in “gas-for-gold” scheme in Turkey. Reza Zarrab, the Iranian sanctions broker who was arrested in Istanbul last week, has told Turkish authorities that Zanjani was his “boss” and contact in Tehran.

To read an account of “gas-for-gold” scheme, please click here.

To read about Rouhani’s order, please click here.

File photo: Babak Zanjani, the “sanctions broker.” (IRNA) 

Rouhani Orders Investigation of Sanctions Profiteers in Iran

In a letter to Vice President Esshaq Jahangiri, Iranian President Hassan Rouhani has ordered an immediate investigation by government agencies for identifying and punishing sanctions profiteers.

“To take the country’s economy out of recession and create an economic boom, it is vital to ensure transparent and secure environment for economic activities. It is necessary to take immediate measures to identify and punish those who by taking advantage of special (anti-sanctions) concessions and privileges that have been granted them to enrich themselves through corruption and illegitimate income,” wrote Rouhani in his letter. (Mehr News Agency, 28 December)

“Cases of abuse, especially regarding the sanctions, should be prioritized, and a report should be presented within a month,” Rouhani added in his letter.

To defy sanctions, the Iranian government had devised schemes to receive payments for its oil and gas exports. It allowed “private” companies, usually fronts for IRGC and the Quds Force, to sell as much as 20% of oil exports in black market. The experience, however, created “sanctions brokers,” like the notorious Babak Zanjani, to misuse their government-backed access to illicit money transfers to amass personal fortunes in shortest time. Zanjani, who entered the oil “business” in 2012, after the sanctions were imposed, boasted to reporters that he was now worth $10 billion.

Another case was the now-infamous “gas-for-gold” scheme, where Iran sent gas and oil to Turkey in return for gold bullions. The Iranian sanctions broker involved in that scheme, Reza Zarrab, was arrested in Istanbul last week and claimed that Babak Zanjani was his ‘boss” and contact in Tehran. The case has now directly involved Iran in the growing government corruption scandal in Turkey.

For an account of “gas-for-gold” scheme and Zanjani and Zarrab operations, please read our post here.

UPDATE: For a Central Bank of Iran report on Zanjani, please click here.

File photo: Iranian President Hassan Rouhani (IRNA)