Iran for Beginners: So What is This $2.8 Billion Bank Fraud?

Former Bank Melli Head Mahmoud Reza KhavariThe Islamic Republic will pay a price whatever course the government takes. If the Iranian judiciary actually exposes the full details of high-level corruption, the government stands to lose further legitimacy even among loyal cadres. Yet if the state does nothing, strife among political factions could deepen, undermining attempts to implement policy changes that could address the country's many social and economic ills.

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The Latest from Iran (15 October): Cutting Through The Noise

Ali Motahari1810 GMT: Economy (Mismanagement) Watch. MP Musalreza Sarvati has claimed that Parliament is ignoring the Ahmadinejad Administration's $15 billion shortfall in the approvied budget. Sarvati also asserted that the administration has withdrawn $4.5 billion from the Central Ban, without depositing a compensating amount into the Treasury.

1805 GMT: The House Arrests. The three children of detained Mir Hossein Mousavi have met with Fatemeh Karroubi, who has also been under house arrest for eight months.

Mousavi's children said they have been denied phone contact with parents, whom they have not seen them in five weeks.

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The Latest from Iran (9 October): The Battle Within

Presidential Chief of Staff Esfandiar Rahim-Mashai and his spiritual mentor, Ayatollah Hadi Ghazanfari Khansari, reportedly sentenced to 10 years in prison

See also Iran Opinion: Is Tehran Immune from the Arab Spring?

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2205 GMT: Reformist Watch. Former President Mohammad Khatami has demanded a strong Parliament to oppose dictatorship and to ensure elections for all people.

2145 GMT: Promise of the Day. Iran Police Chief Esmail Ahmadi Moghaddam, "If information about 80% of youth having sexual relations and 20% drinking alcohol are true, I will resign."

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The Latest from Iran (6 October): Go On, Fear Our Navy....

2000 GMT: The Green Voice of Freedom website reports that it has been under sustained attack for two days and has been blocked in Iran.

1950 GMT: Deviant Current Watch. Ayatollah Jannati, the head of the Guardian Council, has told a seminary in Qom that clerics must oppose the "current" that wants to deviate elections from the concept set by the Supreme Leader.

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The Latest from Iran (3 October): Tehran Slides in the Region

See also Iran Feature: Who Will See the Invisible Iranians?
The Latest from Iran (2 October): Down, Down Goes the Currency

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1915 GMT: CyberWatch. BBC Persian reports on the banning of Virtual Private Networks --- access to computer servers from remote locations --- by the Iranian authorities.

1705 GMT: Bank Fraud Watch. Former President Mohammad Khatami has denied the allegation of the hard-line newspaper Kayhan (see 1010 GMT) that he is linked to the $2.6 billion bank fraud.

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The Latest from Iran (14 September): Ahmadinejad's Public Relations Triumph

See also Iran Video: Full Ahmadinejad Interview with NBC News
Iran Interview: Ahmadinejad to Washington Post "If US Gives Us Uranium, We Will Stop Production"

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2110 GMT: Ahmadinejad's Public Relations Triumph? Another warning signal tonight for the President over his mention of the freeing of US hikers Josh Fattal and Shane Bauer....

Press TV features the remarks of MP Parviz Sarvari, a member of Parliament's National Security Commission, "If Iran was to release these two [spies] without receiving anything from the US Government in return, this would be against the spirit of the Islamic Revolution."

The significance lies not so much in the statement of Sarvari, who is known for heated remarks --- this week he called for the execution of Ahmadinejad's right-hand man Esfandiar Rahim-Mashai (see 0655) --- as in Press TV deciding to give it prominence.

2047 GMT: Omission of the Day. Press TV reports on the President's speech today:

Iran's President Mahmoud Ahmadinejad announces government plans to introduce reforms in the banking system and to strengthen the country's currency.

“Reforming the banking system was placed on the government's agenda and, by God's grace, reforms in this system will begin this year,” Ahmadinejad said on Wednesday in a public address in the northwestern city of Ardabil, the official presidential website reported.

He added that the changes would prevent discrimination in the distribution of banking loans to Iranians.

“I am hopeful that, through banking reforms injustice in granting loans will be no more and the means [enabling] of misuse of public funds will be no longer.”

So what is missing from this report? (Hint: the magic number is 2.6 billion --- see 1445 GMT.)

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Latest from Iran (10 September): A New Protest in Tabriz?

Claimed footage of a demonstration in Tabriz in northwest Iran last night

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See also Latest from Iran (9 September): Ignoring Ahmadinejad on Syria

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2015 GMT: Health Watch. Monavar Khalaj reports for the Financial Times, "Healthcare Costs Move Beyond Most Iranians":

Unofficial figures say healthcare costs [in Iran] have increased between 20 to 40 per cent in recent months.

Masoud Javanbakht, a member of Iran’s Medical Council, a body that represents doctors, warned last month that only 25 per cent of Iran’s 75m population can afford hospital care. Mr Javanbakht told the semi-official Fars news agency that 30 per cent of households stood to lose not only their incomes but also all their savings if a household member were hospitalised. In theory, more than 32m Iranians are covered by the state’s social security fund, which runs some hospitals directly. A parallel organisation, the medical service insurance organisation, covers a further 23m people living mainly in more rural areas. In addition, state employees, such as members of the armed forces and teachers, have their own dedicated health insurance funds. But state-run hospitals are often of poor quality, and staff are badly paid and under-motivated. Waiting lists for operations run up to six months. As a result, 70 per cent of outpatient services are supplied by the private sector.

Masoud Pezeshkian, a former health minister and now a member of the parliament’s health committee, says an operation involving a stay at an intensive care unit can cost more than IR60m ($5,600). “This fee is very high for those who have [low] salaries or are jobless because their assets are not so much to be able to make up for the fees,” Mr Pezeshkian says.

Anoushiravan Mohseni-Bandepay, deputy head of the parliament’s health committee, says what the patient must pay can account for about 60 per cent of treatment while the share covered by public insurance is only about 40 per cent. When it comes to outpatient services, such as pathological and radiological tests, Mr Mohseni-Bandepay says families have to pay on average 65 per cent of expenses.

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The Latest from Iran (6 September): Water Fights, Soggy Papers

1938 GMT: This video purportedly shows merchants protesting at the Tehran Bazaar strike yesterday:

1710 GMT: Terror Watch. Iranian officials say they have arrested five Al Qa'eda members in Kerman Province. Two of the suspects are non-Iranian.

1705 GMT: Today's Get-Tough Moment. Minister of Intelligence Heydar Moslehi has said that his Ministry "vows to curb enemy moves" for next March's Parliamentary elections.

1335 GMT: Picture of Day. A T-shirt with messages and signatures of detainees in Evin Prison:

1330 GMT: Press Watch. Reporters Without Borders, noting yesterday's ban on two reformist publications, has called on Iranian officials to end repression and free detained journalists and bloggers.

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The Latest from Iran (9 September): Water Fights, Soggy Papers

Oops! A bit of a slip-up on the date. We're not actually predicting the future --- the LiveBlog for today, 6 September, is now at the top of the page.

WikiLeaks and Iran Document: Why US Diplomats Suspected Fraud in 2009 Election

Iran analysts, both Iranian and foreign, have reacted with incredulity to the results of the Iranian presidential election and accused the IRIG of grossly rigging the election and falsifying the resuls. The Iran Regional Presence Office's review of Iran's recent presidential elections and the current election indicate the accusations of fraud have merit.

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