New Phase of Military Institutions' Presence in Economy; 'Barracks' Development Intensifies

The economic development of Iran has taken on a military flavor more than ever, with the latest announcement from the CEO of the National Land and Housing Organization regarding cooperation with the Khatam al-Anbia Headquarters for the construction of national housing projects. Arsalan Maleki explained this cooperation, stating: 'The Khatam al-Anbia Headquarters has begun pilot cooperation in the National Housing Movement project in the provinces of Alborz and Yazd.' Yesterday, the governor of Sistan and Baluchestan referred to the water supply issue and mentioned the plan to transfer water from the Sea of Oman, stating that the responsibility for 'this massive project' has been assigned to the Khatam al-Anbia Headquarters, and work is being pursued 'daily and rapidly.' Additionally, the head of the Executive Headquarters of Imam's Command indicated plans to produce 11 million tons of petrochemical products over the next five years, stating: 'This organization will invest $20 billion in the oil industry over the next five years.' Mohammad Mokhber, the first vice president, previously held the presidency of the Executive Headquarters of Imam's Command for a long time, which oversees dozens of companies and economic holdings in various sectors. The presence of security and military institutions in the economy has always been a point of criticism; however, IRGC officials have a different view on this matter. Mohammad Reza Naqdi, the deputy coordinator of the IRGC, responded to these criticisms by saying, 'If the IRGC has entered the economy, we must say that it has not done so for profit-seeking purposes, and the goal of this entry is solely to help the people.' The IRGC's presence began during Hashemi's presidency and continued under Khatami, intensifying during Ahmadinejad's presidency, where on June 6, 2006, it secured a $1.3 billion contract without a tender to complete the Peace Pipeline for gas transfer from South Pars to the Sistan border for gas exports to Pakistan and India. The Khatam al-Anbia Headquarters of the IRGC also secured a contract for the construction of four oil storage tanks on Khark Island in April 2006 and subsequently, again without a tender, obtained a $2.096 billion contract for the development of phases 15 and 16 of South Pars on July 7, 2006. The Khatam al-Anbia Headquarters also took over unfinished projects from the 'Oriental Kish' company, which had been halted due to financial misconduct investigations, acquiring all technical equipment and facilities, as well as several oil rigs from this company for $90 million (summer 2007). In the second term of Ahmadinejad's presidency, the IRGC's presence in the economy became even more pronounced, continuing to this day across all sectors. The Khatam al-Anbia Headquarters is one of the economic arms of the IRGC and is currently considered the 'largest contractor' for government projects in Iran. This headquarters was established after the Iran-Iraq war by the order of Ali Khamenei and the decree of Mohsen Rezai, the then-commander of the IRGC, with the declared goal of 'water supply, oil and gas export, dam construction projects, water transfer, energy, and road construction.' The Khatam al-Anbia Headquarters has been under U.S. sanctions for years. A journalist who raised a question about the tax evasion by the Khatam al-Anbia Headquarters was threatened. Water supply for Sistan and Baluchestan was assigned to the IRGC. After 15 years, a former commander of the largest economic enterprise of the IRGC returned to the same position. Davood Manzoor became the head of the Planning and Budget Organization; a manager who threatened a journalist because of the IRGC. Questions about the Khatam al-Anbia Headquarters' tax evasion led to the head of the Tax Affairs Organization threatening the journalist. Brigadier General Fakhari became the governor of Tehran, completing the military arrangement to confront protesters in the capital.