Two Representatives Request to Halt Cash Payments of Justice Shares Dividends

The heads of the Economic and Budget Committees of the Iranian Parliament have written a letter to President Hassan Rouhani, requesting the government to stop cash payments of Justice Shares dividends. The official news agency of the Parliament, House of the Nation, reported on Friday, October 6, that Mohammad Reza Pourabrahimi, head of the Economic Committee, and Gholamreza Tajgardoon, head of the Budget Committee, described the cash payment of Justice Shares dividends by the government as 'waste of national resources.' The letter states that 'the experience of subsidy payments' in Iran shows that decisions must be made in the country's economy that 'can mobilize resources to increase productivity without affecting the economy, instead of dividing and distributing resources.' These two representatives added that the monthly payment of 3,000 to 9,000 tomans to each holder of Justice Shares is considered 'waste of national resources' because it has 'no impact' on increasing household purchasing power. The heads of the Economic and Budget Committees wrote to the President that 'this payment will not solve any of the people's problems, but instead, with a minimum multiplier of four, equivalent to 16 trillion tomans, important economic projects could be implemented in the country, which would benefit the people.' They proposed that instead of paying cash dividends of Justice Shares, the government should take action to transfer the original shares to the people, and 'the benefits resulting from the payment of dividends should be transferred to individuals in the form of increased share prices.' The head of the Economic Committee had previously stated that 'the people have seen no benefit from these Justice Shares,' and the amount of dividends is 'not even enough to buy two loaves of bread.' This request comes at a time when Eshaq Jahangiri, the first vice president, stated earlier in October that the government is 'committed' to paying Justice Shares dividends to the people and 'will certainly fulfill this commitment.' On September 10 of this year, the deputy head of the Budget and Calculations Committee of the Parliament also stated that 'the payment of Justice Shares dividends or cash subsidies has little effect on increasing people's purchasing power.' Jahanbakhsh Mohbiniya added in an interview with the House of the Nation website that 'the payment of Justice Shares dividends or cash subsidies has little effect on increasing people's purchasing power; therefore, it is desirable to carry out large and fundamental work in the economy by consolidating existing financial resources.' The law for the transfer of Justice Shares was passed in 2005, and by the end of 2016, these shares were transferred to 49 million people in Iran. According to this law, part of the shares of certain state-owned companies is sold to lower-income groups. The method of transferring Justice Shares during Mahmoud Ahmadinejad's presidency had previously faced criticism. Ali Motahari, a member of Parliament, considered the distribution of Justice Shares dividends before the 2009 presidential election as an example of 'electoral immorality and vote-buying.' Parliament members also approved a plan in June 2011 to investigate the manner of transferring and paying dividends of 'Justice Shares.'