The Role of Khamenei's Military in the Collapse of the Iranian Economy

Dec 01
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Preface 

On November 15, 2019, an uprising erupted in Iran and quickly spread to over 187 cities. These protests were triggered after the regime increased the gas price. During these protests, the Iranian people torched many banks and financial institutions across Iran.

At first glance, it might look odd or even violent. Yet, if we take a closer look at this issue, we could see that these banks and financial institutions are affiliated to the regime’s different organizations and help this regime to continue plundering the Iranian people and money laundry. In other word they are centers of corruption. In this article, we intend to show how Iran’s regime is using banks, financial institutions, and even enterprises for plundering national wealth and funding domestic oppression and terrorism abroad.

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In pursuit of its privatization policy, the Office of the Iranian regime’s supreme leader Ali Khamenei began its economic activities through the Khatam al-Anbiya base; at the same time, it worked with other repressive military departments under the banner of combating sanctions and achieving economic prosperity, but which involved confiscation of public property.

An investigation of the progress of Khamenei's privatization shows the privatization policy performance about the outsourced enterprises under the same heading is as follows in just 11 years until the end of 2011:

Ranked # 1: The non-state public sector, with 35.78%, holds the largest share of the current value of these firms (non-state public sector, i.e., executive, armed forces, foundations, and their affiliates).

Second place: the public sector with a share of 25.27%

Third place: the co-operative and equity sector, with a share of 21.11% (these are also mainly affiliated with Khamenei's office and repressive forces).

Fourth place: private sector with a 4.91% share. (Source: Business Weekly March 13, 2015)

While the Office of the Supreme Leader and its levers (executive office, armed forces, foundations) have acquired nearly 2% of the businesses surveyed above, due to their almost absolute influence overall information, legislative and decision-making processes. They also have a significant amount of annual budget, practically hegemonic and quantitative over other areas of the Iranian economy.

"In terms of revenue, the performance of the petrochemical industry in 2017 shows that $12 billion of foreign exchange products came into the country as the industry's share in the stock market traded," said Behzad Mohammadi, a member of the Revolutionary Guards (IRGC) and CEO of the National Petrochemical Company, on January 2, 2019. (The Gulf Petrochemical Company to provide financial support to the Revolutionary Guards and the Army for providing ballistic missile and program Nuclear support sanctions were imposed in 2019).

Holdings of the military in the ownership of the Supreme Leader's power center 

The Revolutionary Guards (IRGC): 

IRGC from Saipa: 17%, totaling $ 3 billion

IRGC shares of Behshar Industrial Investment Company: 16%, $ 565 million

Kerman Petrochemical Corps shares: 25%, or $250 million.

These three alone make up about $4 billion.

The regime's army has also set up various economic institutions in recent years, including Hekmat Bank, Qawamin Bank, Qaem Building, Spadana Industrial Group factories, and the Saba Insurance Foundation.

Department of Defense: 

In the factional feuding, following the Hassan Rouhani’s protest over the regime's "Power of Government with a gun", the then Minister of Defense, Brigadier General Hatami told the state-run daily Iran on August 25, 2018, "The ministry has shut down more than 130 companies that have engaged in economic activity, and Wagon Pars has lost its stake in Iran Air Tour.

To get a picture of the new structure of the Iranian economy under the rule of religious dictatorship, the list of firms belonging to the regime's armed forces is briefly presented, with their collections and substrates.

NAJA Cooperative Foundation affiliated with law enforcement 

The regime's police force, known as NAJA, was formed in 1991 by merging the police, gendarmerie, and suppressive force of the Islamic Revolutionary Committee and is now formally the primary security force in the Iranian regime.

The Naja Cooperative Foundation is a law enforcement agency but is overseen by the Interior Ministry.

The Naja cooperative is one of the largest holding companies in the country today. It expanded after Khamenei's interpretation of Article 44 of the Constitution in 2005. In 2014, state-run media estimated the cooperative's real capital at more than $787 million. (Payesh Press website, September 24, 2014)

Criminal guards and suppressive police commanders 

Each of the provinces of the country is considered to be a police district, and the subordinate cities of each province are law enforcement districts. (Greater Tehran Police Command is the capital of the country and is a police district).

The law enforcement force, established in 1991 as a national police force, has played an essential role in serving the regime in suppressing all uprisings and carrying out arrests, torture, and killing of the irate Iranian people.

An economic giant of the Naja Cooperative Foundation affiliated with law enforcement 

The essential looters of the regime after the institution known as the Execution of Imam Khomeini's Order (EIKO) are:

  • Astan Qods is one of the three economic giants of Iran with production and supply of more than 300 types of agricultural, industrial, dairy and financial, service, technical, commercial enterprises, and ownership of at least 400,000 hectares of agricultural land.
  • Khatam al-Anbia base and the NAJA Cooperative Foundation, which are under the control of the IRGC and law enforcement.

The regime's police force, directly involved in the killing and suppression of the regime, entered into real estate, hotel ownership, and business as a reward from Khamenei. Several law enforcement companies and assets include:

Holding Civil and Sustainable Structural Housing of the Century 

Fifty-one companies own the holding, including "Civil Engineering and Manufacturing," "Amin Saviors," "Tehran Gostar Wire Industries," "Steel and Vineyard Wire," "Greenspan Manufacturers" and "Construction and Housing of Sustainable Space Workspace of the Century."

Holding a business called Dynamic Capital Power 

Includes Najm & Chit-Ray Shop, Naji Pas Company, and Tavan Aqaf Company.

Holding Industry and Mine 

Includes Savi Nash Publishing (Tomorrow's Way), Savi Coating, Zagros Nosh Mehregan, Natanz Arsen Cement, Asia Wool, and Kish Bio Implant.

Campus Hotels Group Foundation 

The Foundation has hotels in most of the major cities of Iran including:

Owner of Samen al-Hajj hotels throughout Iran

Bakhtar Hotel, Sadr Hotel, Negin Hotel, Emerald Hotel, and Parsa Hotel in Mashhad

Bustan Hotel, Baghcheh Hotel, and Pardis Bagh Hotel in Tehran

Molla Sadra Hotel in Shiraz

Beautiful Narges Hotel in Rasht

Khazarabad Complex in Sari

Abadan Caravanserai Hotel

Production and Distribution Cooperative of Jasmine Perfume 

Includes ten companies, including the JAS Lawyer & Lawyer.

Law enforcement and their affiliated companies: 

Holding services

Freight holding

Car Import Company ـ Megamall, Hypiromy & Jasmine (Supermarket)

Savior Research & Development Co. (including Laleh Computer)

The Persian Gulf energy development horizon

ـ Mosque Development Office

Naji Ghadr Company (including "Marine Facilities Engineering and Development Company")

Saviour's Travel Company (including Tokator Travel Agency and Asiaghat West Agency)

Pars Hotels Investment Company

Bank of Qavvamin with a capital of $850 million 

The regime's law enforcement agency first launched the law enforcement fund, and in 2000, during the first term of Mohammad Khatami's presidency, named it the "Law Enforcement Savings and Loan Institution."

After two years, in March 2002, he obtained a license from the Central Bank and transformed the institution into "Qavvamin Bank."

Law enforcement agencies and banks are mainly under the control and activity of the IRGC commanders.

Qavvamin Bank's capital increased from $350 million to $ 850 million in six months.

The spread of corruption in the banking system of the mullahs is a dimension that has brought almost all institutions and bodies into the banking arena independent of the greed and plunder of people's property. Until now, this widespread aqueduct of the corrupt mullahs' system will not remain unblemished.

Therefore, the law-enforcement force that plays a significant role in suppressing the streets, like the Revolutionary Guards and the army, has established a bank, and Qavvamin Bank has entered new markets such as insurance and stock markets.

Published in Articles
Last modified on Sunday, 01 December 2019 22:17

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