Iranian ex-ministers sentenced in major trade corruption case
Two former Iranian ministers have been sentenced to prison for their roles in a major corruption case involving the tea company Debsh, according to Iran’s judiciary spokesperson.
Two former Iranian ministers have been sentenced to prison for their roles in a major corruption case involving the tea company Debsh, according to Iran’s judiciary spokesperson.
Former trade minister Reza Fatemi-Amin received a one-year sentence and former agriculture minister Javad Sadatinejad was handed two years after both found guilty of “complicity in disrupting the country’s economic system”.
The sentencing of former government officials marks a rare instance of high-profile figures being prosecuted in the Islamic Republic. Appeals and commutations have meant similar sentences are often not fully implemented.
The Debsh Tea scandal, one of the largest financial corruption cases in Iran’s history, involved financial misconduct amounting to approximately $3.4 billion. Investigations uncovered widespread fraud, including large-scale tea smuggling, currency manipulation and illegal acquisition of foreign exchange.
At the center of the scandal was the industrial group’s CEO Akbar Rahimi Darabad, who on Monday was sentenced to 66 years in prison for various economic crimes according to his spokesman, including organized smuggling and bank fraud.
Rahimi Darabad has also been required to return over €2 billion in received foreign currency facilities and pay fines for various smuggled tea shipments.
The two ex-ministers were among 44 individuals found guilty in the case, which allegedly involved Iran’s Central Bank and customs and various ministries, raising public concerns over the extent of economic misconduct in the country.
The investigation alleged that Debsh Tea had exploited government policies to acquire vast amounts of foreign currency at official exchange rates, later selling it at significantly higher prices on the open market.
The company also smuggled tea into the country without fulfilling tax and import obligations.
The sharp rise in the price of a staple food, now a lifeline for an increasingly impoverished population, has become a major public concern in recent weeks, a trend now confirmed by official data.
The average price of potatoes reached over 500,000 rials (about 54 US cents) per kilogram in February, up from approximately 150,000 rials a year earlier. Today, the average Iranian worker earns roughly $120-170 per month, while official estimates suggest that a minimum of $500 is needed for the basic survival of a family of three.
The surge positions potatoes as the food item with the highest price increase in the past 12 months, significantly exceeding the country's general inflation rate, which according to official figures hovers around 35%.
Attributing the sharp rise in potato prices to increased exports and smuggling, Agriculture Minister Gholamreza Nouri Ghezeljeh said on Sunday that exports have been halted. "More potatoes were exported this year compared to last year, and some were also smuggled," he said.
Due to fuel and other government subsidies, it is cheaper to produce food staples in Iran than in some neighboring countries. Also, as Iran's currency has lost 50% of its value since September, exporting any homegrown product for foreign currency has become more rewarding.
Paradoxically, Deputy Agricultural Minister Akbar Fat'hi announced in January that Iran was importing 50,000 tons of potatoes to combat soaring prices.
The imported potatoes, aimed at stabilizing the market, were to be sold at approximately 30 US cents per kilogram, significantly below current prices. He warned further imports may be necessary if the market remains volatile.
Eggplant also saw a substantial price increase of 123%, ranking second among food items with the highest annual inflation.
The Statistical Center's report revealed that a broad range of essential goods, including legumes, rice, and dairy products, have experienced significant price hikes in recent weeks. Pinto beans, for instance, saw a 30% increase in just one month, while Iranian rice rose by an average of 13.5%.
While many food categories experienced significant inflation, chicken and beef prices remained relatively stable, with increases of 4% and 8%, respectively. This stability is likely due to decreased demand as rising costs force many Iranians to reduce meat consumption.
