Probe into Iran Telecom Privatisation Ordered

­The controversial privatisation of Iran Telecom is reportedly being investigated following repeated claims that the military Revolutionary Guards are backing one of the investors. Last month,  consortium of three Iranian firms, Etemad Mobin Development paid US$7.8 billion for a 50% plus one share stake in the company.

The business consortium has denied the reports, which if proven would effectively mean an arm of the government brought a stake in a government owned company.

"The 50 per cent plus one share was bought from the public," Mozafar Pour Ranjbar, managing director of Mobin Electronic Development, a member of the consortium, was quoted as saying by the ISNA news agency. "This consortium doesn't have to do with the Guards and has made its purchase from other financial sources," said Mohammad-Reza Modarres Khiabani, head of another member of the consortium.

The Revolutionary Guards first expanded into commercial activity through informal social networking of veterans and former officials. It is now a vast conglomerate, controlling Iran's missile batteries and nuclear program but also a multibillion-dollar business empire reaching almost all economic sectors. It is thought to control around a third of Iran's economy through a series of subsidiaries and trusts.

The Revolutionary Guards' involvement in the political clamp-down following the recent election has raised concerns that they are seeking to take control of one of the main avenues of spreading messages by dissidents - namely the telecommunications network.

Posted to the site on 11th October 2009