Iran's Attorney General: 1200 Billion Tomans Embezzled from National and Mellat Banks

The Attorney General of Iran has reported a 1200 billion toman embezzlement case involving the National Bank and Mellat Bank, stating that five individuals have been arrested in connection with the case and that 'one of the main debtors' has 'fled' the country. According to the state news agency IRNA, Mohammad Jafar Montazeri announced on Thursday evening, November 6, during a television program that approximately 1200 billion tomans have been embezzled from the two banks and that 'the money has disappeared.' The Attorney General provided details about the amounts involved in the embezzlement but did not clarify what he meant by 'the money has disappeared.' Montazeri stated that five individuals have been arrested in connection with this case, but 'one of the main bank debtors' has fled abroad and is being pursued by the Tehran prosecutor's office and Interpol. He announced that 800 billion tomans of this embezzlement is related to the National Bank, of which 300 billion tomans has been returned to the bank. According to Montazeri, 300 billion tomans of this embezzlement is related to Mellat Bank, of which 120 billion tomans has been returned, and 'part of it has been identified and seized abroad through Interpol, and they are also pursuing the main suspect.' The Attorney General did not mention when this embezzlement was discovered or provide other details about the case. In 2011, the National Bank of Iran, along with Export Bank, was involved in a financial scandal referred to as a 3000 billion toman corruption or embezzlement case. The primary suspect in this case was Mahafarid Amir-Khosravi, who, along with three other suspects, was sentenced to death, and his execution was carried out on May 24, 2014. Mahmoud Reza Khavari, the former CEO of the National Bank of Iran, was also a suspect in this case and fled to Canada in October 2011 after the scandal was revealed, and Iran's efforts to extradite him have so far been unsuccessful. The news of this new embezzlement comes as the topic of an '8000 billion toman embezzlement' in the Cultural Fund for Educators has made headlines in recent weeks, with Gholamhossein Mohseni Ejei, the spokesman for the judiciary, announcing that Shahabuddin Ghondali, the CEO of this fund, has been arrested. According to the Attorney General, 'it is not good for the country to witness such embezzlements every now and then.' Montazeri added, 'If the supervision of the Central Bank and the banks themselves over the performance and flow of money is strengthened, embezzlements will be prevented.' He also stated regarding the embezzlement in the Cultural Fund for Educators that he does not intend to announce details 'until the violations are proven in court.' The Cultural Fund for Educators has over 800,000 members affiliated with the Ministry of Education and pays annual profits to them from their monthly deposits. The 'Sarmayeh' bank is considered a subsidiary of this fund.