KHATAMI GOVERNMENT ACCUSED OF PLUNDERING NATION’S OIL WEALTH
By Parviz Sahra’i, IPS Energy Correspondent
PARIS-TEHRAN 4 July (IPS) Ruling Iranian conservatives opened a new front against the embattled President Mohammad Khatami, accusing the Oil Ministry of "plundering millions and millions" of the nation’s wealth by granting foreign firms "dubious contracts".
The charges, so far the most insulting and humiliating for Mr. Khatami, were brought by Ayatollah Ahmad Jannati, the Secretary of the powerful Council of Guardians who, on Tuesday, reiterated earler accusations against the Oil Ministry and promised that he would give the names of those who plundered the nation’s wealth to Ayatollah Mahmood Hashemi-Shahroodi, the Head of the Judiciary.
Considering the position of Mr. Jannati, one of the most powerful and influential figures among the ruling conservative establishment, analysts said his accusations about the Oil ministry is the most vehement attack on President Mohammad Khatami’s policies of "clarity and answerability".
The cleric’s charges came at the same time that the Oil Ministry signed a 400 US Dollars contact with ENI of Italia for the development of the Darkhovein onshore fields in the oil Province of Khoozestan.
The new contract, to be followed by some others worth more than USD 600 millions, will make ENI, already present in several oil fields as well as in the Phase five and six of the huge South Pars gas field in the Persian Gulf, Iran’s the largest foreign partner, ahead of the French TotalFinaElf.
The Ministry is under fire from all sides, including the reformist camp, because of the total secrecy and opacity that cover contracts it sign with European oil firms under a system known as "buy back" that permits the investing company to take back its investments, profits and interests from the oil, or gas it helps discover.
Iranian oil experts both inside and outside say European oil firms that defy the American oil sanctions imposes harsh conditions on the Iranians who, for their part, are satisfied to have "rubbed the nose of the Great Satan".
In the past years, Iran has been able to sign contracts worth US 10 billions with French, Russian, Malay and Italian oil and gas firms.
Iranian Constitution bars foreign companies to invest in Iran’s strategic industries, chiefly oil.
On Monday, the 12-members Council’s Public Relations Department reported that Ayatollah Jannati would present information on 'illegal kickbacks and dubious contracts' within the Oil ministry to the highest authority in the Judiciary, the official news agency IRNA reported.
It said that the hard-line Ayatollah, who is a close associate of the regime’s leader, Ayatollah Ali Khamenehe'i, has asked Mr. Hashemi-Shahroodi, put in charge to combat economic corruption, to look into this case "to the end".
In a speech delivered in the central city of Esfahan last Friday, Ayatollah Jannati said "for many years, there has been talk of millions and millions of illegal kickbacks and dubious contracts in certain circles and recently, some of issues have been further clarified", he said, without further explanation.
Mr. Jannati claimed that he has the names of the people who "plundered millions and millions in the oil empire and transferred the money to their foreign accounts".
The Oil ministry immediately welcomed the identification of the people Mr. Jannati had claimed are involved in the plundering of the nation’s most important source of revenues and urged him to provide the President, the Oil ministry and all other responsible officials with the necessary information.
Mr. Jannati promised to comply and at the same time called on Hojjatoleslam Mehdi Karroobi, the Majles Speaker to form a bipartisan investigation committee to also follow up the scandal.
In a meeting with Mr. Karroobi late on Monday, deputies from the Oil Ministry promised to provide the Majles all documents related to contracts signed with foreign companies.
The pro-government English language daily "Iran News" called Tuesday on the Oil Ministry to keep its act clean and publish all pertinent contents and data of its contracts and ensuing commitments in order to dispel the current unease both at home and abroad.
The article was referring to some contracts signed by the National Iranian Oil Company and some foreign companies, including the one-billion dollar contract with ENI of Italy as well as a 7.4-billion dollar contract with Japanese to develop the Azadegan oil field.
A member of the Organisation of Petroleum Exporting Countries (OPEC), Iran boasts the world's third largest oil reserves after Saudi Arabia and Iraq, and the second largest gas reserves after Russia.
Commenting on the key role being played by oil and gas in the Iranian economy, it denounced the silence of the Oil Ministry officials regarding the oil and gas contracts signed with foreign companies.
Tehran is now also ready to negotiate another major deal with Japan and to tap western investors for the production of liquefied natural gas (LNG)
The ministry's Public Relations Department, in a statement send to IRNA, called on Ayatollah Jannati for the immediate release of information to judicial officials and expressed readiness for full disclosure pertaining to all claims of financial impropriety regarding its personnel.
The statement also referred to the ministry's "bewilderment" as to the reasons of the apparent delay in revealing graft charges and said it wants the names of the account holders, place of deposit and other relevant materials revealed’, IRNA further quoted the statement.
The bulletin also said the ministry stresses the necessity for transparent
information and expects individuals to refrain from leveling accusations without
sufficient evidence. "Otherwise, such accusations will lead to slow-down in
the development of indigenous oil industry", it added. ENDS OIL MINISTRY
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