IRGC Withdraws from Shares of Telecommunications and Mobile First Companies

The Foundation of the Islamic Revolutionary Guard Corps (IRGC) announced on Wednesday, October 24, its exit from the shareholding of Iran Telecommunications Company and Mobile First. This news comes after the Supreme Leader of the Islamic Republic tasked the General Staff of the Armed Forces of Iran with pursuing the divestiture of 'unrelated' economic enterprises within the IRGC, the army, and the Ministry of Defense. The public relations office of the IRGC Foundation stated in its announcement that it is relinquishing shares and exiting the development company 'Etemad Mobin' related to the shareholding of Iran Telecommunications Company and Mobile First. The statement did not provide details but mentioned that the IRGC made this decision 'in line with the measures of the General Staff of the Armed Forces' of the country. Following Khamenei's directive in 2006 regarding the necessity of accelerating privatization in Iran, on September 27, 2009, during the largest transaction in the history of the Iranian stock market that lasted only half an hour, 50 percent plus one share of Iran Telecommunications Company was transferred to the 'Etemad Mobin' consortium, which includes the IRGC Foundation and one of the companies under the Executive Headquarters of Imam's Command. Moments before the transaction of Iran Telecommunications Company shares began, the cooperative company Pishgaman Kavir Yazd, a primary bidder for purchasing these shares, suddenly withdrew, with some websites reporting that the reason for this withdrawal was 'pressure' exerted on it. The parliament also confirmed in a report the actions of security forces to eliminate a rival company of the Etemad Mobin consortium, emphasizing that the auction held in this regard was 'formal' and 'completely non-competitive.' At that time, Mohammad Reza Rahimi, the first deputy of Mahmoud Ahmadinejad, expressed regret over the transfer of Iran Telecommunications Company to one of the IRGC's subsidiary companies, deeming it incorrect. Rahimi stated, 'We sold the communications sector, which was one of the most effective and profitable sectors of the Ministry of Communications, on the recommendation of the gentlemen. Enjoy it, but I wish we hadn't done it.' Despite significant opposition, Iran's armed forces, security agencies, and other institutions affiliated with the Supreme Leader have established financial and economic institutions in various sectors over the years. In Khamenei's directive to the armed forces for the divestiture of 'unrelated' economic enterprises, it was stated that the activities of the armed forces in the area of 'construction,' including the activities of the Khatam al-Anbiya Headquarters of the IRGC, would continue based on the government's needs. The activities of the Khatam al-Anbiya Headquarters will continue, despite the significant criticism this institution has faced in recent years. Many construction and infrastructure projects in Iran across various sectors, including energy, telecommunications, transportation, and dam construction, have been awarded to this headquarters with government approval and without following the bidding process. Although some government officials have stated that the Khatam al-Anbiya Headquarters has not delivered some of its previous projects after the deadline, this IRGC-affiliated institution has criticized the government for not awarding contracts in the oil and shipbuilding sectors to it. Akbar Turkan, the then-secretary of the Free Zones Coordination Council of Iran in 2014, criticized the Khatam al-Anbiya Headquarters for 'not attracting' foreign financing for the Persian Gulf Bridge project on Qeshm Island, stating that 'the government cannot exert pressure on the Khatam Headquarters.' Nevertheless, the spokesperson for the IRGC responded to the protests regarding the economic activities of this institution by saying that 'a bunch of cunning people' are operating in the country's contracting sector. Ramadan Sharif claimed that the IRGC has trained 'a significant portion' of the country's contractors and specialists, employed them in important projects, and prevented their emigration. In response to criticisms that the IRGC has become a competitor to the private sector, he also stated, 'If you find a single complaint that says the IRGC has executed a project at a higher cost and longer duration with lower quality, you are right.' The news of the IRGC's exit from the shareholding of the telecommunications company comes as the plan to 'hand over the internet gateway to the armed forces' is being examined in the Cultural Commission of the Islamic Consultative Assembly.