They ate the steel and washed it down with water – Steel Gate 2
In the second part of the Steel Gate report, ‘They ate the steel and washed it down with water’ has been mentioned. The parliamentary investigation report on Mobarakeh Steel is full of strange details about unbelievable corruption in this Iranian industrial giant. Many governmental and non-governmental individuals and entities have been directly involved in these corruptions and must be brought to justice. This report, which is the second part of a series of reports on decoding the Steel Gate case, examines the details of major violations by Mobarakeh Steel Company of Isfahan.
Ambiguous media contracts: How much do you charge to lie?
In recent years, Mobarakeh Steel has spent vast amounts on advertising and media activities. This action is despite the fact that Mobarakeh Steel, as the giant of Iran’s steel industry, does not need advertising, and it seems that these payments were merely for providing false statistics by the media and a kind of hush money. Among the media that have cooperated with Mobarakeh Steel, all kinds of names can be seen.
For example, Mobarakeh has paid large sums to completely unknown media, which definitely indicates corruption in these contracts. For instance, in 2018, Mobarakeh signed an 800 million toman contract with Mino Houshmandpour, the owner of a monthly magazine with a circulation of 500 copies. The total amount paid by Mobarakeh to Houshmandpour in subsequent years also reaches three billion and 640 million tomans.
Of course, we must also add the costs of paper, transportation, and accommodation for journalists, reporters, and photographers, which were borne by Mobarakeh. On the other hand, in 2020, Mobarakeh signed a seven billion toman media contract with Fardad Sayal Chahar Fasl Company, although the mentioned company had no prior experience in advertising, indicating a major corruption.
Contract for broadcasting false news on state TV
Mobarakeh Steel’s payments were not limited to unknown media. Even the Islamic Republic’s state TV played a role in covering up corruption in Mobarakeh Steel. In April 2021, at a time when public sensitivity towards the violations at Mobarakeh was high, the company paid over 22 billion tomans to state TV to broadcast false statistics.
In fact, state TV had announced that Mobarakeh Steel achieved a production of 10 million tons in 2020, which was nothing but a lie. Additionally, in state TV’s advertisements, some of Mobarakeh’s past achievements were falsely presented as the achievements of the current management team.
Besides state TV, the names of many major national media outlets are also mentioned in this report, including newspapers like Keyhan, Hamshahri, Donya-e-Eqtesad, Ettelaat, Jam-e-Jam, Etemad, Smt, Shargh, and news agencies like Fars, ISNA, Mehr, Borna, Imna, ILNA, and news websites like Khabarfori, Tabnak, Bourse News, Rouydad24, Eghtesad Online, Salamat News, and more.
Mobarakeh Steel’s generosity in giving gifts
During the period reviewed in the parliamentary report, from October 2018 to July 2021, Mobarakeh Steel of Isfahan paid over 180 billion tomans as gifts to various individuals. This is while, according to the board’s resolution in 2020, the CEO could pay a maximum of 300 million tomans without obtaining board approval, and amounts beyond that required separate approval.
However, during this period, the steel assembly increased this ceiling to 50 billion tomans and then to 15 billion tomans. In other words, Mobarakeh first made the payments and then obtained approval for them. Additionally, the company provided some of its buildings and vehicles to influential individuals and entities without receiving any payment.
The 200 million toman party by the Isfahan governorate
Part of Mobarakeh Steel’s payments was essentially bribes to influential individuals like members of parliament, the CEO of IMIDRO, the governor, and others, which is completely illegal. These bribes were also deposited into the non-governmental accounts of these individuals, which are not subject to oversight.
This issue paves the way for corruption, misuse, and even money laundering by these individuals. On the other hand, state TV managers were also involved, receiving money for broadcasting programs supporting Mobarakeh managers’ performance and even inviting them for interviews and garnering support from parliament members.
Furthermore, Mobarakeh Steel illegally paid over two billion tomans in cash to the governorate and the Isfahan governor’s office. The Isfahan governor’s office even received 200 million tomans from Mobarakeh Steel for hosting a party.
Intelligence involvement in the Steel Gate case
Investigations show that the General Directorate of Intelligence of Isfahan Province received a total of two billion and 600 million tomans in bribes from Mobarakeh Steel in 2019 and 2020. Additionally, Mobarakeh Steel provided this directorate with three foreign Hyundai vehicles, including one Elantra and two Tucson. The General Directorate of Intelligence was not satisfied with this and later received 130 million tomans in shopping vouchers from Hakopian stores. Mobarakeh Steel also had plans to silence the company’s security, delivering 500 million tomans in gift cards to the security manager, whose destination remains unknown.
From intelligence to Friday prayer leaders, everyone is involved
The list of gift recipients, read bribes, from Mobarakeh Steel is very extensive, and only a part of this list is mentioned here. The Isfahan Provincial Police received 15 billion tomans, the Zaman Owner Corps, Basij bases, and the Ministry of Defense received 6 billion and 300 million tomans, Friday prayer leaders’ offices received one billion and 400 million tomans, the seminary, Friday prayer headquarters, and mosque construction received 950 million tomans, the judiciary received 300 million tomans, and the Arbaeen headquarters received 500 million tomans.
But these gifts were not just cash, and it seems that corruption in Mobarakeh Steel extended to meeting others’ daily needs. For example, during the reviewed period, over 5 billion tomans in flower pots, perfumes, external hard drives, flash drives, earphones, and more were given to individuals. Additionally, over 45 billion tomans in Gaz was purchased by the company and gifted to external individuals.
Many government institutions also received gift cards from Mobarakeh Steel. The General Directorate of Tax Affairs, Customs, Isfahan Oil Company, Audit Organization, Stock Exchange, Central Bank, and Atomic Energy Organization are just a few of these institutions.
Nabati Nejad bought a laptop and mobile for his child
The parliamentary report shows that between 2019 and 2021, Mobarakeh Steel’s public relations continuously purchased valuable items such as gold coins, credit cards, gift cards for purchasing goods, tablets, mobile phones, laptops, and more. The then-public relations manager, Hadi Nabati Nejad, is not accountable for the recipients of these items, and according to investigations, a large portion of these items was purchased for personal use.
Even after the investigation committee found out that Nabati Nejad and his child were using laptops and several mobile phones purchased by the company, these items were retrieved.
Illegal support in the 11th parliamentary elections
During the 11th parliamentary elections, extensive advertising by three candidates was very noticeable, and the trace of dirty money in their campaigns was evident. In return, these candidates, who had a very good relationship with Mobarakeh Steel’s CEO, played a significant role in his illegal retention. The parliamentary report does not mention these individuals, but all five Isfahan representatives in parliament are principlists, and therefore, these three are also principlists in parliament.
Mobarakeh Steel or Parliament: Who is telling the truth?
The CEO of Mobarakeh Steel has made great efforts to establish connections with the representatives of the 11th parliament. For example, efforts to connect with Hossein Mirzaei, the representative of the people of Isfahan and the head of the investigation committee, can be mentioned.
After Mobarakeh’s failure to establish a connection with Mirzaei, Mobarakeh managers tried to connect with the managers of the Ensha Institute, where Mirzaei was previously a director. However, Mobarakeh Steel also failed in this attempt, but a former board member of the institute issued a fake letter and received 200 million tomans from Mobarakeh Steel.
The CEO of Mobarakeh Steel, in response to the company’s illegal payments, states that the head of the investigation committee himself was among the recipients of these gifts. However, it is still unclear whether the investigation committee’s story is true or if the CEO of Mobarakeh Steel is making it up. Since this story is quoted from the investigation committee, it cannot be relied upon, and we must hope that judicial authorities will reveal the truth in the future.
DMCA Cover
