First Vice President Rouhani Confirms Report on His Brother's Arrest

After the website Tabnak reported the arrest of Mehdi Jahangiri, head of the Tourism Financial Group and brother of Iran's First Vice President, Eshaq Jahangiri confirmed the news but expressed ignorance about the reasons for the arrest. According to ISNA's report, Eshaq Jahangiri confirmed the arrest on his personal Instagram page but stated, 'I do not have accurate information about the reason, manner of arrest, charges, investigator, and plaintiff regarding my brother.' The First Vice President of Hassan Rouhani also pointed out that his brother has 'no governmental responsibilities or activities' and expressed hope that his brother's arrest 'is not a political misuse and that justice, the fight against corruption, and the rule of law are applied equally for all.' He also mentioned that the arrest of his brother 'was predictable' and that 'patience is required in this matter.' The Tabnak website was the first source to report on Mehdi Jahangiri's arrest early Friday morning, but it also noted that the exact reason for Mr. Jahangiri's arrest is 'not precisely known but is likely related to issues that have been raised about him in the media over the past year.' Mehdi Jahangiri, head of the Tourism Financial Group and Vice President of the Tehran Chamber of Commerce, was recognized as a top entrepreneur in the tourism industry in October 2016. The Tourism Bank and the Tourism Financial Group were established during Hamid Baghaei's presidency at the Cultural Heritage and Tourism Organization. Mr. Jahangiri served as the Deputy for Investment at this organization during Esfandiar Rahim Mashaei's presidency in Mahmoud Ahmadinejad's first government. His arrest comes as Hamid Baghaei's lawyer announced that his client's court hearing will be held on October 17. The Tourism Financial Group operates through five main companies in banking, tourism, construction, oil and gas, petrochemicals, and industry and mining. The Tourism Bank, Samga Tourism Investment Company, Bonab Industrial Steel Complex, Negin Investment Company, Mahan Industries and Mines Holding, Omid Ofogh Tourism Development, and Iranian Tourism Horizon Company are subsidiaries of this group. The Alef website published a report in 2011 about 'some of the rent-seeking activities of the Tourism Financial Group' during Mahmoud Ahmadinejad's government. This website, affiliated with Ahmad Tavakoli, identified one of the 'special rents' as the transfer of 1,258,000 square meters of land in Lavizan in northeastern Tehran to this private company. The website also listed the transfer of the rights to build and operate international hotels at Imam Khomeini Airport to this private company as another of 'Samga's rents' during the government. According to this contract, Samga received 31,000 square meters of free land in the Imam Khomeini International Airport area and built hotels on it. Samga is set to transfer the rights to these hotels to the country's airports company after 25 years. Mohammad Baqer Qalibaf, a presidential candidate, implicitly accused Mehdi Jahangiri of involvement in banking corruption during the third presidential debate. In this context, in May of this year, a few weeks before the presidential election, Alireza Zakani, a representative from Tehran in the ninth parliament, referred to Mehdi Jahangiri as the 'owner of the Tourism Bank' and stated that he was a board member of the Petrochemical Trading Company (PCC). Following this, Mehdi Jahangiri announced that the Tourism Financial Group and its member companies have 'never belonged or been affiliated with any governmental, semi-governmental, or specific political entity' and are 'completely private.' He emphasized that according to regulations, 'ownership of a bank's shares by an individual is not possible, and the list of bank shareholders is available in the reports of assemblies and through the Securities and Exchange Organization's system for the public.' Mehdi Jahangiri also stated that he has never been a board member of the Petrochemical Trading Company.