Tehran Reinsurance Company or Davarpanah and Shakarian Fund
This insurance company was supposed to preserve shareholders’ capital and create value, but today what stands out more than anything else is a multitude of ambiguities, non-transparent decisions, and questions that no one is willing to answer.
When the value of purchased coins is questioned by real figures, when serious ambiguities are raised about the foreign currency receipts of the CEO and one of the board members, and when financial statements add to the volume of questions instead of clarifying the reality, it is no longer possible to speak of professional management. Overpayment to Shakarian, a board member, is just one of the blatant violations confirmed by the auditor. Non-compliance with the formalities law in Article 129 of the Commercial Code amendment has been stated by the auditor, and these indicate a strong intent for violation and misuse. Non-compliance with the Commercial Code regarding control and sensitivity towards issues where there is a conflict of interest and fairness of transactions with related parties has been confirmed by the auditor. The company’s consultant contracts, according to the financial audit, either lack board approval or there is no contract at all, and payments to them have been made without regulation. Receipt of foreign currency by Davarpanah, the CEO, and Shakarian, a board member, was outside the regulations, and there is no document regarding the return of funds that were obligated to be returned to the company’s fund.
Shareholders did not invest to witness the company being managed in an environment overshadowed by suspicions of conflict of interest and lack of transparency. They have the right to know how every rial of the company’s resources has been spent and why so many ambiguities remain unanswered.
A company that should be a model of transparency, accountability, and profitability, if it cannot answer these questions, raises concerns that it has deviated from its main path and is serving the interests of a limited group rather than being managed for the benefit of all shareholders.
Shareholders’ trust cannot be restored with slogans; the only way to rebuild it is through the dissemination of transparent information, full accountability, and resolving all ambiguities. Until that day, the question remains: Is this company still an economic entity belonging to all shareholders, or has it turned into a private playground for a few managers?
