Outrage in Iran over reassignment of 'corrupt' minister

The Iranian Parliament is going through a strange period these days. Former Minister of Industry, Mines and Trade Mohammad Shariatmadari, who was on the verge of being impeached, has now been confirmed by lawmakers as Iran’s new minister of cooperatives, labor and social welfare — even as he faces accusations of corruption and disapproval by the public.

Reformist parliamentarians’ decision to back him as minister of labor has disappointment growing among their supporters by the day.

Shariatmadari is perhaps one of the most controversial figures in the administration of President Hassan Rouhani. The former industry minister has served in various governments throughout the history of the Islamic Republic. He was appointed as minister of industry, mine and trade when Rouhani began his second term last year. However, his one-year tenure in that position was filled with controversy — including speculation about his allocation of hard currency at the lower official rate to profiteering individuals or companies. The latter are accused of either not using their allocated hard currency to import anything — rather hoarding or selling it on the open market for up to four times the rate — or importing goods at the official exchange rate and then selling them at the far higher open market rates. Shariatmadari has been accused of not being transparent about which companies gained access to foreign currency at the official rate.

Dissatisfaction over Shariatmadari’s performance prompted lawmakers to move for his impeachment on Aug. 28. The motion was signed by 70 parliament members and listed 15 reasons for the decision. They included weak management, corruption and rentierism in the allocation of foreign currency and ordering vehicles, failure to control and manage markets, the dramatic rise in prices and failure to carry out his responsibilities related to the fight against smuggling of goods and foreign currency.