A power struggle involving Iranian reformists and the country’s conservative clergy may well be behind the latest scandal currently grabbing headlines in Tehran.
The incident was sparked several days ago when one of the country’s most influential and outspoken clerics declared there to be a web of corruption in the Iranian oil ministry. He made his statements just days after it was reported that Iran's National Oil Company and the Italian oil group ENI had reached a deal to develop the Darkhoein oilfield in southwestern Iran.
The agreement follows a "buy-back" formula, according to which the contractor—in this case ENI—will both finance and operate the project, for a fixed period of time. The procedure has been developed by reformists as a way to boost foreign investment in the Iranian energy sector, but it has been criticized by conservatives as representing the sale of national assets to non-Iranian interests.
The cleric in question is Ayatollah Ahmad Jannati, regarded in Iranian as one of the remaining proponents of “revolutionary Islam.” He also happens to be secretary of the powerful Guardians Council, which is an oversight body that has been responsible for keeping the country’s reformist-dominated parliament in check.
Quoted several days ago by the Aftab-e Yazd daily, Jannati declared that he had submitted a petition to the country’s judicial authorities, requesting that they investigate a system kickbacks and suspect contracts within the oil ministry. He went further, stating that he had in his possession the names of oil ministry officials who had embezzled massive amounts in the oil sector, and transferred the money to foreign bank accounts.
In an attempt to discount any political motive, Jannati called on Parliament Speaker Mehdi Karoubi to name an impartial parliamentary delegation in order to investigate whether his claims are true or not. He said that the conclusions of such an investigation should be made public.
For their part, oil ministry officials publicly backed an open inquiry, and met with Karoubi to make their opinion known.
But a more ominous tone—indicating, possibly, the real motive of the onslaught was struck earlier, when a group of conservative deputies warned that parliament could force an investigation. These deputies darkly hinted that the oil ministry might have an interest in keeping its foreign buy-back deals under wraps.
It should be noted that the buy-back system is one that has been adopted only reluctantly, even by those who support it. The foreign oil firms are hardly in love with the system; but are prepared to live with it if it is the only way of becoming involved in the lucrative Iranian energy sector. The system was formulated about seven years ago as a means to assist the Iranian government in bypassing constitutional bans on foreign ventures and so attract foreign capital into the country. It was seized upon by the country’s reformists, and vehemently opposed by the conservatives.
Since 1997 Iran has attracted about $11.5 billion in foreign buy-back deals in its oil and gas sectors. And, earlier this year, the parliament approved a plan according to which the state-owned National Iranian Oil Company (NIOC) could conclude up to $7.5 billion in foreign buy-back deals during the current fiscal year, which started March 21. It was a decision bitterly criticized by the conservatives.
It is, therefore, understandable that the conservatives were hardly overjoyed by the announcement several days ago that ENI and the Naftiran Intertrade Co. had signed a one billion dollar buyback contract with NIOC to develop Darquain onshore field in the Iranian province of Kuzestan. The investment will be paid back through revenues over a six year period.
Darquain, which lies 45 kilometers northeast of Abadan, is expected to produce up to 200,000 barrels per day of oil with the installation of facilities. ENI already has holdings in the South Pars gas field and in the Doroud and Balal oil fields.
It should be noted that, in concluding the agreement, ENI was already sticking its neck out. This is because the deal is considered one of the first serious tests of US President George W. Bush's resolve to apply the Iran-Libya Sanctions Act. The act, which is scheduled to be renewed, calls for sanctions against non-American companies that invest more than $20 million a year in Iran or Libya.
In Tehran, Jannati is considered among the most radical of the Iranian ayatollahs. He achieved a degree of notoriety in 1996, when after returning from a pilgrimage to the holy cities in Saudi Arabia, he delivered an inflammatory speech against the Saudi royal family, who he predicted would “soon be toppled by an Islamic Revolution." At the time, the speech led to speculation that Iran may be aiding to radical fundamentalist elements inside Saudi Arabia in an effort to destabilize the kingdom.
Jannati’s son, Ali, serves as Iran’s ambassador to Kuwait. In this capacity, he has spoken out against disputes in the area "created by foreigners, and has called for wider cooperation among the Islamic nations in the region. – (MENA Report)
© 2001 Mena Report (www.menareport.com)
