Economy, Business And Markets

New Names Added to €650 million Corruption Scandal

New Names Added to €650 million Corruption Scandal
New Names Added to €650 million Corruption Scandal

Government agencies have been biased in favoring a commercial company, in a €650 million ($840 million) corruption case, according to parliament’s Article 90 Committee.

The Central Bank of Iran and the ministry of mines, industry and trade have blatantly favored Sepid Ostovar Asia, a commercial company, over its competitors, doubling the firm’s power and influence in the essential goods and livestock market.

The case involves a sale of €80 million ($103 million) and extension of €650 million of credit by the CBI at official foreign exchange rates which are currently 20 percent cheaper than market rates for the euro.

Sepid Ostovar Asia’s owner has made 4-4.5 trillion rials ($169-$187.9 million) in profit, through the corruption case, simultaneously increasing his company’s market share.

The prosecutor of the Supreme Audit Court has recently announced that the CBI and the ministry of industry, mine, and trade have violated Article 44 of the Constitution, and should be cautioned. The court is tasked with controlling the financial operations of state institutions.

Article 90 Committee’s investigation into the case was prompted by a complaint by lawmaker Ahmad Tavakoli, filed in Jan. 15.

The letter written to Tavakoli by the committee’s chairman further says that while the two government agencies clearly favored Sepid Ostovar Asia and declined competitive bids by other companies, “the case has led to no wastage of taxpayers’ money.”

According to Article 90, people who have complaints against the parliament, administration or judiciary can forward their complaint in writing to the parliament, which must investigate the complaint and give a satisfactory reply. In cases that the subject of the complaint is related to the public interest, the reply must be made public.