Recent developments in Tehran have ignited controversy surrounding the allocation of land by Tehran Municipality to Mahan Air for the development of a tourist resort. The move, announced by Mayor Alireza Zakani, has raised serious questions about transparency, ethics, and the choice of partner in municipal projects.
State-run media have revealed that Tehran Municipality has earmarked a sprawling plot of land, spanning 33,000 square meters, in one of Tehran’s most coveted areas for the development of a recreational and tourist center. However, what initially appeared to be a routine municipal project has been clouded by controversy, primarily due to the involvement of Mahan Air, an airline company with a checkered past.
Mahan Air, known primarily for its involvement in transporting weapons and ammunition to conflict zones like Syria, seems an unlikely candidate for a tourist resort development project. Reports also indicate that the land was allocated to Mahan Air without a competitive bidding process, raising questions about the motives behind the agreement.
Founded in 1991, Mahan Air has rapidly grown to become the Iranian regime’s biggest aviation company and a primary tool for air transport. The firm’s connections to high-ranking officials and its history of operating under the radar have raised concerns about its credibility and suitability as a partner for municipal projects.
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The U.S. Department of the Treasury designated Iranian commercial airline Mahan Air pursuant to Executive Order 13224 on December 12, 2011, for providing financial, material, and technological support to the Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF).
Ever since, the US Departments of Treasury and State have blacklisted Mahan Air’s business partners, facilitators, and sales agents throughout the world.
The latest agreement is structured as a Build-Operate-Transfer (BOT) contract, a common economic arrangement between governments and private entities. Under this framework, the private sector invests in and manages a project, with eventual ownership reverting to the government.
However, several aspects of the deal have drawn criticism, even inside the regime. Foremost among them is the absence of a clear timeline for the partnership between Tehran Municipality and Mahan Air. Unlike typical BOT contracts, this crucial detail is reportedly omitted from the Tehran-Mahan agreement, raising concerns about the transparency and accountability of the arrangement.
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Additionally, the agreement bypasses standard bureaucratic procedures, such as conducting tenders and obtaining approval from the city council. Instead, Tehran Municipality appears to have expedited the process, mandating the handover of the land to Mahan Air within a 15-day timeframe, enabling the airline to commence construction without further regulatory oversight.
The exact location of the 30,000-square-meter plot remains undisclosed, adding to the uncertainty surrounding the deal. However, aerial maps accompanying the agreement suggest its proximity to a river, near the intersection of Chamran Highway and Molasadra Street. This area is known for its favorable climate and abundant greenery, constituting a significant portion of Tehran’s green spaces.
This controversial land allocation by Tehran Municipality to Mahan Air is not an isolated incident but rather a symptom of a broader issue ingrained in the governance system. The long history of corruption and embezzlement within the clerical regime’s ranks has demonstrated how state officials at all levels exploit corporate contracts and business opportunities for personal gain, often at the expense of public welfare and international norms. By flouting legal and ethical standards, these officials not only jeopardize the integrity of public institutions but also undermine efforts to uphold international law and sanctions regimes.
