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Out of currency devaluation comes….transparency?

Written by Diligencia | Oct 13, 2018 8:00:00 AM

Whilst the Iranian rial (IRR) has been hammered over recent weeks following the US withdrawal from the nuclear deal, the Iranian government has tried to reassure the public that it has no shortage of foreign currency. In response it has been offering foreign currency based on a US dollar rate of 42,000 IRR – nearly half the actual market value – to importers of foreign goods.

Meanwhile the rise in prices and devalued currency have been causing public unrest. In a push for transparency and confronting suspected corruption, Minister of Communications and Information Technology Javad Azari Jahromi on June 25 published a list of companies that had been granted foreign currency at the beneficial government rate to import mobile phones. The list detailed the amount of currency given to each company for importing mobile phones and their expenditure for this purpose between March 21 and June 19, 2018.

Diligencia took a closer look at Jahromi’s list:

  • The list included 40 companies; 30 of which are registered in Tehran, 7 in either Qeshm or Chabahar Free Zones and 3 in other cities.
  • Nearly half the companies were established less than five years ago. For example, Espinans Tejarat Nikan Company, founded in 2017, received over 10 million EUR to import mobile phones and Hamrah Vision Communication Company, established in 2016, received over 15 million EUR. The oldest company on the list is Homa Telecommunication Development Company, which was established in 2002.
    According to Jahromi, the company that received the most foreign currency, Nodis Pardaz Company (over 26.5 million EUR), imported 20,000 iPhones and then sold 15,000 to another company for nearly 20 million IRR over the expected price per unit (roughly 500 USD at the government official rate). Jahromi said that an inspection report on Nodis Pardaz was sent to the authorities; according to Diligencia’s sources, companies that have been selling the imported mobile phones at rates above the government’s preferential USD rate must pay the difference to the government and may face fines.
  • Indeed, according to reports by the official IRNA news agency, the main managers of 15 companies have recently been accused of misusing the allocated currency and are currently under arrest (see full list below). IRNA also reported that the suspects’ cases are being tried by the Revolutionary Court, which is mainly responsible for legal cases involving threats to national security – thus indicating the severity of the matter.

NAME OF MANAGER NAME OF COMPANY
Mohammad Ghaleb Alamdari Datis Emertat International Development of IT and Communications Company
Alireza Sanjari  Espinans Tejarat Nikan Company
Sanbad Safarha  Pars Samtel Qeshm Company
Aliasghar Kaviani  Karian Hamrah Company
Majid Falahi  Media Pardazesh Chabahar Free Zone Company
Mohammad Moradi  Hamrah Vision Communication Company
Jafar Beheshti Foroutan  Ima Hamrah Company
Seyed Mohammad Kaviani  Hamrah Tejarat Bozorgmehr Company
Fereydoon Aminaghaei  Hamahang Pardazesh Houshmand Company
Amir Meysam Giyahi  Arvand Group Investment Development Company
Masoud Ebrahimi Gandomi  Rayan Shenas Iranian Company
Reza Sherkat Eftekhar  Persian Almas System Services Company
Seyed Mehdi Yasini  Tavan Yasin Economic Development Company
Farrokh Eskandari Nejad  Delta Hamrah Pardaz Shargh Company
  • The second largest recipient, Ima Hamrah Company, received over 20 million EUR at the government rate. A newly established business, lma Hamrah is mainly owned by the Abrishamchi family, which has been prominent in the telecommunications sector for over 10 years and is particularly known for importing Nokia products to Iran. In addition, one of Ima Hamrah’s sister companies, Karian Hamrah Company, received 13 million EUR at the government rate, meaning that the ultimate owners in fact received over 33 million EUR. It is interesting to note that the owners did not use a third sister company, Pars Microtel Company, a better known company that has been active for over a decade in the mobile phone sector.
  • Media Pardazesh Chabahar Free Zone Company was the third largest recipient of foreign currency at the government’s preferential rate (nearly 22 million EUR). It was established in 2011 and is owned by the Deilami family, who are known for importing LG home appliances through Goldiran. According to Diligencia’s records, the Deilami family is also the owner of Alfa Motor Company which has been an agent of Alfa Romeo in Iran.

It is often said in the West that the Iranian telecommunications sector is significantly influenced by governmental or parastatal organisations, such as the IRGC. However, according to Diligencia’s records, the companies on the list released by Jahromi are owned by private individuals and do not have direct shareholding links to such organisations. Notwithstanding, sources have suggested that some of these companies are owned by individuals who are well-connected to the government, although this cannot readily be confirmed by Diligencia.

Jahromi’s action pushed the government towards increasing transparency with regards to public funds. As such, the Iranian central bank published a comprehensive list of importers in other sectors who received foreign currency at the government’s preferential US dollar rate, except the automotive sector. Nonetheless, after public pressure the Ministry of Industry, Mines and Trade in the end published a similar list on automotive importers. Diligencia is now working to map these companies.

 

ENGLISH NAME FARSI  NAME ALLOCATED (EUR)
Nodis Pardaz Company شرکت نو دیس پرداز بامسئولیت محدود  26,657,026.00
Hamahang Pardazesh Houshmand Company شرکت هماهنگ پردازش هوشمند سهامی خاص 26,064,070.00
Media Pardazesh Chabahar Free Zone Company   شرکت مدیا پردازش منطقه آزاد چابهارسهامی خاص 21,821,834.00
Ima Hamrah Company   شركت ايما همراه سهامي خاص 20,049,158.00
Pars Samtel Qeshm Company شرکت پارس سام تل قشم سهامی خاص 18,043,862.00
Hamrah Vision Communication Company   شرکت ارتباط همراه ویژن سهامی خاص 15,046,540.00
Karian Hamrah Company   شركت كاريان همراه سهامي خاص 13,070,746.00
Espinans Tejarat Nikan Company  شرکت اسپینانس تجارت نیکان سهامی خاص 10,335,242.00
Datis Emertat International Development of IT and Communications Company شرکت توسعه گسترش فن آوري اطلاعات و ارتباطات بین المللی داتیس امرتات بامسئولیت محدود 9,492,505.00
Tejarat Yas Jahan International Company   شرکت بين المللي تجارت ياس جهان سهامي خاص 9,398,036.00
Hamrah Tejarat Bozorgmehr Company   همراه تجارت بزرگمهر 6,795,049.00
Iranian Ghaem Hamrah Company   شرکت ايرانيان قائم همراه سهامي خاص 4,716,972.00
Homa Telecommunication Development Company   شرکت توسعه ارتباطات هما سهامي خاص 4,593,694.00
Rayan Shenas Iranian Company   شرکت رايان شناس ايرانيان بامسئوليت محدود 3,718,812.00
Manatel Pars Company   شرکت مانا تل پارس بامسئوليت محدود 3,647,820.00
Pishro Electronic Farasoo Company   شرکت پيشرو الكترونيك فراسو سهامي خاص 3,508,687.00
Pars Cel Qeshm Company  پارس سل قشم 2,685,136.00
Persian Almas System Services Company   شرکت خدماتي پرشين الماس سيستم بامسئوليت محدود 2,163,913.00
Parto Tejarat Sadr Company   شرکت پرتو تجارت صدر سهامي خاص 1,898,785.00
Smart Technology Gheshm Company   شركت اسمارت تكنولوژي قشم بامسئوليت محدود 1,855,215.00
Chabahar Free Zone Pars Novin Media Company   شركت پارس نوين مديا منطقه آزاد چابهار سهامي خاص 1,847,558.00
Negarsazan Pardis Aria Engineering Company  شرکت مهندسي نگارسازان پرديس آريا بامسئوليت محدود 1,747,672.00
Chabahar Free Zone Yekta Tose Pishgaman Hamrah Company   يكتا توسعه پيشگامان همراه منطقه آزاد چابهار 1,433,823.00
Zarin Sadaf Atlas Support Services Company   شرکت خدماتي پشتيباني زرين صدف اطلس بامسئوليت محدو 1,430,920.00
Hamrah System Atra Company   شرکت همراه سيستم آترا سهامي خاص 1,250,320.00
Pishtazan Fanavari Sib Talaee Company   شرکت پيشتازان فناوري سيب طلايي سهامي خاص 1,077,120.00
Ayesh Network Company   شرکت آيش شبكه سهامي خاص 997,883.00
Sarir Service Company   شرکت سرير سرويس بامسئوليت محدود 631,340.00
Tahlil Rayaneh Gostar Farda Company   حليل رايانه گستر فردا 568,600.00
Fortex Rayaneh Industrial Complex Company   شرکت مجتمع صنعتي فورتكس رايانه سهامي خاص 526,186.00
Amordad Hamrah Company   شرکت امرداد همراه سهامي خاص 505,608.00
Delta Hamrah Pardaz Shargh Company   شرکت دلتا همراه پرداز شرق بامسئوليت محدود 500,000.00
Sourin Pakhsh Rayaneh Company   شرکت سورين پخش رايانه سهامي خاص 498,750.00
Arvand Group Investment Development Company   توسعه سرمايه گذاري گروه آروند 497,700.00
Day Tel Company   دي تل 495,000.00
Tavan Yasin Economic Development Company شرکت توسعه اقتصاد توان ياسين سهامي خاص 395,023.00
Sib Talaee Houshmand Company  شرکت سيب طلايي هوشمند سهامي خاص 325,229.00
Fujan Ertebat Qeshm Company  شركت فوژان ارتباط قشم سهامي خاص 234,800.00
Tahlilgaran Houshmand Omid Company تحليل گران هوشمند اميد 108,570.00
Tanin Andaz Shahr Pak Commercial Engineering Company   شرکت مهندسي بازرگاني طنين انداز شهر پاك سهامي خاص 8,000.00