Iran: Regime’s ‘Public-Private Partnership’ bill Could Result in Corruption Worth 15,600 Trillion
The 2021-2022 public-private partnership bill, according to Iranian state media, will pave the stage for sanctioned corruption in the coming years. The budget measure for 2021-2022, on the other hand, has run into issues. There are serious worries about the budget line’s implementation, owing to the massive increase in taxes and sales of government assets, as well as the controversies surrounding soaring energy carrier prices and the impact of eliminating preferred currency from some imported commodities.
Furthermore, the so-called ‘Public-Private Partnership Bill’ has become a source of significant concern among the regime’s economists. The ‘public-private partnership law’ is now being pushed in the Iranian parliament under two parallel prongs, according to the regime’s media and Ahmad Tavakoli’s ‘Transparency and Justice Watch Organization.’First, under the framework of the four budget laws for 2021-2022, Ebrahim Raisi’s government wants to acknowledge transfers to the private sector in the 2021-2022 Budget Consolidation Commission.
Second, the regime’s parliament’s Civil Commission has resolved to evaluate and deliberate on the regime’s proposed bill as well as the Planning and Budget Organization’s orders.
“The background to the Public-Private Partnership bill demonstrates that it was prepared by a group of beneficiaries so that they can institutionalize corruption, graft, and prejudice in the legislative and executive processes through legislation,” the state-run daily Shargh stated on November 2, 2021. There are more than 86,000 semi-finished construction projects in the country, according to government statistics and declarations. Each one was given a credit of ten billion rials to accomplish.”
According to Mohsen Renani, a regime economist, the regime cannot complete these projects because of the government’s debt and the probability of a large budget deficit even with oil and tax income. Renani also cited the period between the start of privatization in Iran in 1991 and the end of 2019, concluding that 900 government-run projects and firms were transferred to the private sector, with a total worth of 7,200 trillion rials. He cites a 2018 report by the Court of Audit, which revealed several notable incidents of corruption in the privatization of state-owned firms, with the lowest level of corruption accounting for 52 percent of the companies’ wealth.
According to him, the regime’s parliament’s ‘Public-Private Partnership’ bill, which is now being discreetly approved, could result in corruption worth 15,600 trillion rials flowing directly from the Iranian people’s coffers into the pockets of corrupt officials. He calculated that this sum was four times the amount of corruption associated with the privatization policy in the 30 years preceding up to 2019.
According to Farshad Momeni, a regime professor of economics, the so-called ‘public-private partnership bill’ will move the most corrupt part of the government (i.e., ‘government transactions’) to the government’s darker chambers, where it will quietly link the people’s wealth to the regime’s nobles’ wealth.
“The scale of corruption in all privatizations in the 30 years after the war (with Iraq) is roughly equivalent to a banknote going 1,440 times around the planet,” Renani said of the bill’s malfeasance. The ‘public-private partnership’ bill, which is currently being secretly passed in parliament, has a ‘corruption potential’ comparable to 6,000 banknotes around the world, or more than four times the total privatization corruption of the 30 years following the war.”