NCRI – So-called charity foundations of the Iranian regime’s armed forces have received permission from the Central Bank to operate as banks. The institutions are under the direct control of the mullahs’ Supreme Leader, Ali Khamenei, and are some of the most important tools used by the Islamic Revolutionary Guard Corps (IRGC) and its paramilitary Bassij to dominate the Iranian economy.
The head of the Iranian Central Bank, Mahmoud Bahmani, had previously underscored that there are many such financial institutions that operate outside the official banking sector, obtaining funds from people as charity and offering loans with interest rates of up to 30 to 35 percent. These charity organizations are controlled by the regime’s armed forces and specifically the IRGC and constitute an apparatus for dominating the country’s financial sector.
The IRGC-controlled Mehr Foundation, is now planning to carry out its activities as a bank after operating for years without a license as the “Bassiji Charity Fund.”
In fact, all of the regime’s armed forces, including the military, the Bassij, and the IRGC own financial and credit institutions. Some of them like the Mehr Foundation have made some changes to their names after becoming officially sanctioned by the Central Bank in order to hide their links to armed and paramilitary forces.
The Mehr Foundation has created an investment company called “Mehr Iranian Economy,” playing a major role in the stock market and purchasing recently privatized companies, including part ownership in the Telecommunication Company, Mobarakeh Steel, Tabriz Tractor Manufacturing, Techno Taz, Jaberin Pharmaceuticals, Angouran Mine and others.
The IRGC also carries out extensive economic and financial activities using its Khatam al-Anbia Base and the Cooperatives. These companies have signed significant contracts with the government in road building, dam building, and oil and gas sectors, amounting to an estimated 15 billion dollars. The most recent contract involves developing the South Pars gas field which is thought to be worth about 21 billion dollars.
In 2009 alone, institutions ties to the IRGC’s Cooperatives purchased many state-owned enterprises, including 45% share in Bahman Group, 4% share in Saipa car manufacturing, 25% share in Kermanshah Petrochemicals, and full ownership of some manufacturing, air transport services and food companies.
Some of the IRGC’s financial institutions like “Mehr Iranian Economy” have formed a consortium buying considerable stakes in large industrial companies and mines, amounting to more than 20 billion dollars.
The move towards empowering the IRGC to become the dominating force in Iran’s financial sector and economy primarily began during Mohammad Khatami’s presidency.
