The government has obliged all administrative bodies to submit a list of their divestible assets to the Economy Ministry, according to a bylaw issued by the first vice president.
Mohammad Mokhber has given a month to government organizations to send the list otherwise those in charge will be held accountable by the Government Economic Coordination Headquarters, Fars News Agency reported.
Property and real estate expected to be on the divestment list are scattered across the country and the bylaw called on governor generals to set up provincial taskforces to address issues related to the divestiture.
Taskforces should “unceasingly” work to identify surplus assets and property owned by administrative bodies and collaborate with the Economy Ministry to sell the assets.
As per the bylaw, divestible assets can be sold either via public auctions or the Iran Mercantile Exchange.
Income from divestitures will be given to the provincial administrative bodies that have divested the property.
The budget stipulates that earnings from divestment of government property must be used for development projects.
It has been often reported that large parts of the property owned by the government and its affiliates are an extra burden and unneeded.
Despite the fact that the government is facing chronic budget deficits, many administrative bodies are unable or unwilling to realize revenues projected in the 2021-22 budget by via property divestment.
The government earlier said it expects to generate 960 trillion rials ($3.5 billion) by selling surplus assets before the current fiscal year is out in March 2022.
However, experts have cast doubt on the projection saying it is unrealistic. In a report published earlier in the week by the Majlis Research Center, the government, at best, would be able to realize 30% of the projections (300 trillion rials).
Based on earlier estimates by the Economy Ministry, about 1,000 estates owned by the government should be on the divestiture list.
Government divestitures are backed by Article 44 of the Constitution that offers opportunities to private enterprise, promotes downsizing and curbs the bloated bureaucracy.
According to privatization laws and the same article, state-owned enterprises fall into three main groups.
The government is barred from ownership, investment and managerial posts in Group 1. Likewise, it is obliged to transfer 80% of the total firms in Group 2 to private, public and nongovernmental organizations plus to cooperatives. Ownership, investment and management positions in Group 3 is the exclusive premise of the government.
