Shocking Revelations of Financial Scams Involving Iran’s Powerful Clerics
By: Mohammad Hosein Kiani Date: March 15, 2013
Background
On February 3, 2013, President Mahmoud Ahmadinejad of Iran exposed high-level corruption involving powerful clerics and their families during a parliament session [1]. The allegations were based on a video tape that implicated Ali Larijani, the head of the Parliament, and his brother Sadeqh Larijani, the chief justice, in a financial scam.
The Larijani Brothers’ Influence
The Larijani brothers, longtime figures in Iran’s political scene, have a reputation for maintaining strong ties with western powers. This connection dates back to the British rule of Iraq in the 1920s [1].
Ali Larijani
Ali Larijani, the more prominent of the duo, has almost two dozen family members serving in the Iranian parliament, making him a formidable force in Iranian politics.
Corruption Scandal and Public Reaction
Ahmadinejad’s bold move in exposing the corruption case was a significant development in his ongoing power struggle against the clerical oligarchy. Two weeks later, the Iranian supreme court handed down death sentences by hanging for three businessmen and a banker in a high-profile financial corruption case [1]. These executions were seen as a response to Ahmadinejad’s claims.
Stealing Billions: The $2.8bn Fraud
The corruption case involved $2.8bn in suspected fraud by Mah-Afarid Khosravi, the CEO of a steel company. Khosravi allegedly forged letters of credit from Bank Saderat and presented the fake documents to seven other banks, including Bank Melli [1].
Key Accused Individuals
- Mah-Afarid Khosravi
- Behdad Behzadi
- Iraj Shojaei
- Saeid Kiani-Zadeh
Clerics’ Families and Corruption
The Larijani brothers were not the only members of the clerical class implicated in financial scandals. In June 2012, confidential letters were leaked to an Iranian opposition website, revealing how Javad Larijani, another brother of Ali, had taken possession of over 800 acres of public land for his family’s livestock farm [2].
Despite legal documents and court orders asking for action against Javad Larijani, the letters and the land have not been recovered [2].
Corruption Among the Clerics: A Long-Standing Issue
Corruption has been a contentious issue in Iran since the 1979 revolution. While minor offenders face severe punishments, those at the top remain unscathed [3]. High-ranking officials, religious leaders, and their families have abused their power to amass fortunes.
Effects of the Revelations
Ahmadinejad’s announcement created a powerful ripple effect. The question remains whether the Iranian judiciary, known for its harsh punishments against civilians, will take action against the corrupt businessmen and continue with Executions of Iran’s youth for minor charges.
The world watches to see if the Iranian government will deliver justice for the victims or continue to protect the corrupt elite.
[1]: “Iran Daily News.” (2013, March 15). Tensions within Iran’s Islamic Republic Reach a Boiling Point as President Ahmadinejad Exposes High-Level Corruption Involving Powerful Clerics. [2]: “Iran Daily News.” (2012, June 22). Confidential Letters Reveal Javad Larijani’s Possession of Over 800 Acres of Public Land. [3]: “Amnesty International.” (n.d.). Iran.