The Government’s Hand in People’s Pockets
The Government’s Hand in People’s Pockets: According to Iran Gate, a recent audio file released by the hacking group ‘Adalat Ali’ has raised concerns among many Iranian retirees and the elderly about their future and the receipt of their salaries and pensions, which are their only means of livelihood.
In this audio file, the voice of Mohammad Reza Farzin, the Governor of the Central Bank, can be heard apparently speaking with Mohammad Mokhber, the First Vice President of Raisi. In this phone conversation, where only Farzin’s voice is recorded, it seems Mokhber considers the salaries and pensions of retirees as an additional burden on the government.
In the audio file released by the hacking group ‘Adalat Ali’ of the phone conversation between Mohammad Reza Farzin and Mohammad Mokhber, there are concerning points regarding the future of retirees in Iran. Farzin, in this conversation, confirms Mokhber’s statement about the bankruptcy of pension funds and the additional pressure of paying retirees’ pensions on the government.
In this conversation, the Governor of the Central Bank appears to be under pressure to help the government provide resources for paying retirees’ pensions by what we know as printing money. Farzin also highlights a very important point in this conversation, which is the bankruptcy of pension funds that have not yet declared their bankruptcy. These points are of great importance, but ultimately, one can draw a specific conclusion, which is the intensification of inflation following the government’s renewed borrowing from the Central Bank to provide resources for pension payments.
The Crisis of Pension Funds’ Bankruptcy
The issue of corruption and the bankruptcy of national pension funds has always been evaluated in recent years as one of the crises embedded like a ticking time bomb in the heart of Iran’s economy. From embezzlement in the Teachers’ Pension Fund to the heavy deficits and imbalances of similar funds, these factors have led these pension centers to the brink of bankruptcy. Another factor is the government’s heavy debts to these funds, which have existed for years and now reports indicate a sudden and exponential increase in this debt under Ebrahim Raisi’s government.
There’s Always Something Amiss
But what is the root of this bankruptcy and the main problem of the pension funds crisis, on which the livelihood of Iranian seniors completely depends? Why has the government, which is the largest and wealthiest entity in Iran’s governing structure, put its hand in the pockets of retirees and paved the way for the bankruptcy of their only point of reliance?
The reason for this is quite clear: the government is experiencing an imbalance between resources and expenditures. In fact, it can be briefly said that retirees are one of the groups bearing the brunt of the heavy budget deficit of Raisi’s government. In other words, the government, with the motive of reducing costs, does not pay many of its debts to funds and insurance organizations. In reality, it is these entities and their beneficiaries who are paying the price for the government’s extravagance.
On the other hand, despite refusing to pay its debts to these funds, the government still struggles with providing resources to balance the ratio between expenditures and resources. Simply put, even though Raisi’s government does not pay its debts to retirees, using the excuse of a heavy budget deficit, it still cannot cover this deficit and resorts to borrowing from the Central Bank again, which leads to intensified inflation.
What is Raisi’s Government Worried About?
This destructive policy of the government not only imposes a heavy burden on ordinary society but also places additional pressure on the country’s seniors and retirees. Pressure that was always felt after the annual announcement of salary and pension increases, but in the spring of 2022, this pressure was so intense that it led to nationwide protests by retirees in most provinces of the country.
The anxious and worried voice of Mohammad Reza Farzin in this leaked audio file clearly indicates the reality that the government of Ebrahim Raisi has put a lot of pressure on him and the Central Bank to provide the necessary resources for paying retirees’ pensions. The Central Bank has no choice but to print powerful money for this purpose, hence Farzin tries to convince Mokhber that such an action would be very dangerous.
But what is the government’s fear of this matter? Naturally, in a situation where the country has faced nationwide protests in the past four months, the government also fears that minor and major economic crises will cause other segments of society to join the recent protests.
In this particular case, which points to the bankruptcy of pension funds, the government fears that the salaries and pensions of this group may not be paid due to the bankruptcy of the mentioned centers, and retirees may join the protesters, who are mainly from the younger and even teenage segments of society.
For this reason, the government tries to provide the necessary resources in the most destructive way possible by putting pressure on the Central Bank to ensure that pension payments are not delayed. However, it should be noted that this action by Raisi’s government will not be in line with meeting the needs of retirees and seniors.
Rather, it is equivalent to stealthily dipping into the pockets of this group. Now, with the release of this audio file, which has not been mentioned in official media, we must wait and see whether the government still intends to pay retirees’ pensions in the manner mentioned or if another miracle is on the way that economists cannot comprehend.