Nobakht: Most Unconventional Salaries Are Related to the Private Sector

The government spokesman announced that most managers receiving 'unconventional' salaries are from the 'private sector', meaning 'economic enterprises related and unrelated to the government', and that 'a small number' of government managers have benefited from these salaries and benefits. According to ISNA news agency, Mohammad Baqer Nobakht stated on Wednesday evening, July 30, during a television program: 'Based on the investigations of the General Inspection Organization, a small number of government managers have benefited from these salaries and benefits.' He added: 'Most individuals receiving these salaries are related to the private sector, meaning economic enterprises related and unrelated to the government.' Furthermore, according to an audio file released by the state news agency IRNA, Mr. Nobakht stated that 'the majority' of recipients of 'unconventional' salaries are managers of economic enterprises 'related to or unrelated to the government', which are referred to as 'private'. In Iranian media, companies are referred to as 'private' that are not on the list of state companies, but a portion of their shares is held by government-supervised entities or other governmental institutions, and their managers are appointed directly or indirectly by the government, which intervenes in their administration. One of these economic enterprises is Bank Mellat. Government officials and this bank have stated in recent years that more than 70% of the bank's shares have been transferred and that it has been privatized. However, a significant portion of the bank's shares is held by entities such as the Social Security Investment Company, which is indirectly managed under government supervision. Therefore, although the CEO of Bank Mellat is selected by the board of directors, the government plays a role in his selection. Meanwhile, some conservative media outlets have pointed out that Ali Rastgar, the former CEO of Bank Mellat, was born in Sarakhs, the birthplace of Hassan Rouhani, and have accused Hossein Fereydoun, the brother of the Iranian president, of having a role in his promotion to CEO of Bank Mellat. Mr. Rastgar's name has been mentioned in conservative media as one of the recipients of 'unconventional' salaries, and he had resigned from his position. Meanwhile, one day after reports about the arrest of Ali Rastgar and his deputy, on Wednesday, the commander of the Islamic Revolutionary Guard Corps announced that the former CEO of Bank Mellat and his deputy were not arrested solely due to the issue of 'astronomical salaries' of government managers. Mohammad Ali Jafari accused them of being members of an economic 'corruption network' that, according to him, 'some politicians' are also involved in. Mr. Nobakht, in another part of his remarks, stated that economic enterprises whose managers have received unconventional salaries have 'gradually used specific laws over the years and separated themselves from the scope of the Civil Service Management Law.' He quoted the head of the Inspection Organization as saying that according to a resolution of the previous government in 2011, the salaries of the manager and members of the board of directors of the National Development Fund had 'no ceiling', and they could set any amount as their salary. He emphasized that from now on, the salaries of all managers will be based on the resolution of the Salary and Wage Council. The Research Center of the Iranian Parliament, in a report, referred to the issue of 'unconventional' salaries of some managers as 'precedent' and accused the previous government of 'negligence or indifference' regarding this issue, stating that several government agencies had been exempted from the laws related to the salaries of government employees. According to this center, based on a resolution of the cabinet, 'broad' powers were delegated to the head of the National Development Fund to determine the salaries of the manager and members of the board of directors of this fund, and 'in practice, decision-making about payments without a specific ceiling was left to the executors', which has recently been amended. Meanwhile, Hassan Rouhani, the president of Iran, on July 4, without naming anyone, stated that according to the regulations of 2011, the manager of one of the government institutions could have 'even up to one billion tomans in income'. In this context, Jafari's explanations about the arrest of members of the 'financial corruption network' related to 'politicians' have been welcomed by conservative newspapers regarding the arrest of banking managers. The Intelligence Organization of the IRGC arrested the former CEO of Bank Mellat and his deputy.