They ate the steel and washed it down with water – Steelgate 2
In the second part of the Steelgate report, titled ‘They ate the steel and washed it down with water,’ the parliamentary investigation report on Mobarakeh Steel is filled with strange details of unbelievable corruption in this industrial giant of Iran. In these corruptions, many real and legal governmental and non-governmental persons have been directly involved and need to be prosecuted. This report, which is the second part of a series of reports decoding the Steelgate case, examines the details of major violations of Mobarakeh Steel Company in Isfahan.
Ambiguous media contracts – How much do you get to lie?
In recent years, Mobarakeh Steel has made extensive financial distributions in the field of advertising and media activities. This 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 solely for providing false statistics by the media and a kind of hush money to them. Among the media that have collaborated with Mobarakeh Steel, all sorts 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 Steel signed an 800 million Toman contract with Minoo Houshmandpour, the owner of a monthly magazine with a circulation of 500 copies. The total amount paid by Mobarakeh Steel to Houshmandpour in subsequent years also reached 3 billion and 640 million Tomans.
Of course, we should also add the costs of paper, transportation, and accommodation of the reporter, journalist, and photographer, which were borne by Mobarakeh Steel, to this amount. On the other hand, in 2020, Mobarakeh Steel signed a 7 billion Toman media contract with Fardad Sial Chahar Fasl Company, although the mentioned company had no prior experience in the field of advertising, indicating a major corruption in this contract.
Contract for broadcasting false news on national TV
Mobarakeh Steel’s payments were not limited to unknown media. Even the Islamic Republic of Iran Broadcasting (IRIB) played a role in covering up the corruption at Mobarakeh Steel. In April 2021, precisely when public opinion was sensitive to the violations at Mobarakeh Steel, the company paid over 22 billion Tomans to IRIB to broadcast false statistics.
In fact, IRIB announced that Mobarakeh Steel had reached a production of 10 million tons in 2020, which was nothing but a lie. Additionally, in IRIB’s advertisements, some of Mobarakeh Steel’s past achievements were falsely presented as the achievements of the current management team.
Besides IRIB, the names of many major national media outlets also appear in this report, including newspapers like Kayhan, Hamshahri, Donya-e-Eqtesad, Ettela’at, Jam-e-Jam, Etemad, Samt, Shargh, and news agencies like Fars, ISNA, Mehr, Borna, Imna, ILNA, and news websites like Khabar Fori, Tabnak, Bourse News, Rouydad24, Eghtesad Online, Salamat News, and others.
Mobarakeh Steel’s generosity in giving gifts
During the period reviewed in the parliamentary report, from October 2018 to July 2021, Mobarakeh Steel Company paid over 180 billion Tomans as gifts to various individuals. This is while, according to a board resolution in 2020, the CEO could pay a maximum of 300 million Tomans without board approval, and amounts exceeding that required separate board approval.
However, during this period, Mobarakeh’s 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 cars to influential individuals without receiving any payment.
A 200 million Toman party by the Isfahan Governor’s Office
Part of Mobarakeh Steel’s payments was essentially bribes to officials such as 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 situation creates a breeding ground for corruption, abuse, and even money laundering by these individuals. On the other hand, the managers of IRIB have also become involved in this matter, receiving money for broadcasting programs related to supporting the performance of Mobarakeh’s managers and even inviting them for interviews and garnering support from parliament members.
Moreover, Mobarakeh Steel has illegally paid over 2 billion Tomans in cash to the governor’s office and the Isfahan Governor’s Office. Even the Isfahan Governor’s Office received 200 million Tomans from Mobarakeh Steel for hosting a party.
The involvement of intelligence services in the Steelgate case
Investigations reveal that the General Directorate of Intelligence of Isfahan Province received a total of 2 billion and 600 million Tomans in bribes from Mobarakeh Steel during 2019 and 2020. Additionally, Mobarakeh Steel provided three foreign Hyundai cars, including one Elantra and two Tucson models, to this directorate. The General Directorate of Intelligence was not satisfied with this amount and subsequently received 130 million Tomans in shopping vouchers from Hakoupian stores. Mobarakeh Steel also had plans to silence the company’s security department by handing over 500 million Tomans in gift cards to the head of the security department, the destination of which is 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 part of this list is mentioned here. The Isfahan Province Police received 15 billion Tomans, the Sepah-e-Sahib al-Zaman Province, Basij bases, and the Ministry of Defense received 6 billion and 300 million Tomans, the offices of Friday prayer leaders received 1 billion and 400 million Tomans, the seminary, the Friday prayer organizing committee, and mosque construction received 950 million Tomans, the judiciary received 300 million Tomans, and the Arba’een committee received 500 million Tomans.
However, these gifts were not just cash, and it seems that corruption at Mobarakeh Steel extended to meeting the daily needs of others as well. For example, during the reviewed period, over 5 billion Tomans worth of flower pots, perfumes, external hard drives, flash drives, headphones, and more were paid to individuals. Additionally, over 45 billion Tomans worth of Gaz (a type of Iranian nougat) was purchased by the company and given to external individuals.
Many government agencies 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 agencies.
Nabati Nejad bought a laptop and mobile for his child
The parliamentary report shows that during the years 2019 to 2021, the public relations department of Mobarakeh Steel continuously purchased valuable items such as gold coins, credit cards, and gift cards for purchasing goods, tablets, mobiles, 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 significant portion of these items were purchased for personal use.
Even after the investigation committee learned that Nabati Nejad and his child were using laptops and several of the mobiles purchased by the company, these items were reclaimed.
Illegal support in the 11th parliamentary elections
During the 11th parliamentary elections, the extensive advertising by three candidates was very noticeable, and the trace of dirty money in their advertising was evident. In return, these candidates, who had a very good relationship with the CEO of Mobarakeh Steel, played a significant role in his illegal retention. The parliamentary report does not mention the names of these individuals, but all five representatives of Isfahan in parliament are principlists, and therefore these three are also principlists in parliament.
Mobarakeh Steel or the parliament, who is telling the truth?
The CEO of Mobarakeh Steel made significant efforts to establish a connection with the representatives of the 11th parliament. For example, there was an effort to connect with Hossein Mirzaei, the representative of Isfahan and the head of the investigation committee.
After Mobarakeh’s failure to establish a connection with Mirzaei, Mobarakeh’s managers attempted to connect with the managers of the Ensha Institute, where Mirzaei was previously a director. However, Mobarakeh Steel also failed in this attempt. Nonetheless, a former member of the institute’s board issued a fake letter and received 200 million Tomans from Mobarakeh Steel.
The CEO of Mobarakeh Steel also stated in response to the company’s illegal payments that the head of the investigation committee himself was a recipient of these gifts. However, it is still unclear whether the investigation committee’s story is true or if the CEO of Mobarakeh Steel is telling the truth. 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.
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