A court in Tehran has ruled that the government officially re-claim ownership of Haft Tappeh Sugarcane Agro-Industry Company.
The government sold the giant sugarcane company in 2015 to a private owner but the controversial privatization was suspended by top supervisory bodies in May, the official website of the judiciary reported.
The privatization project was reportedly fraught with corruption and violated the provisions of Principle 44 of the Islamic Republic of Iran Constitution, which provides guidelines on downsizing and divestiture of government assets.
Located in Shoosh in southwestern Khuzestan Province, Haft Teppeh is the biggest sugarcane company in Iran. It was founded in 1958 and became operational in 1961 mandated to farm sugarcane and other agro/dairy products and develop associated industries. The giant agriculture holding produces sugar, alcohol, wheat, barley, kraft paper, industrial coal, molasses and bagasse.
Since the outset divestiture of Haft Tappeh was under a big question mark and became one of the most controversial privatization projects of the previous administration.
Soon after the company was sold, sporadic protests emerged and workers went on strike to demand unpaid wages and better working conditions. The huge enterprise has 5,000 workers.
The latest court ruling was issued following investigations that showed all the basic privatization rules and formalities were not upheld and the buyer, among other things, was not qualified to manage a company of this size.
Over the years there were reports that the company had been sold at a very cheap price to vested interests amid lack of transparency and proper oversight.
The government has tried to relinquish its ownership in several
(loss-making) companies in the past two decades to improve r efficiency and give space to private enterprise to play bigger role in the economy.
