Ex-ministers face prison time for role in Iran's $3 billion corruption scandal

Two former Iranian ministers have been sentenced to prison for their involvement in a massive corruption scandal that resulted in the misuse of over $3 billion in public funds.

The First Branch of Tehran’s Islamic Revolution Court issued verdicts for former agriculture minister Kazem Sadatinejad and former trade minister Reza Fatemi Amin, sentencing them to two years and one year in prison, respectively. Both men were found guilty in connection with the 2023 tea smuggling scandal, known in Iran as the Debsh Tea Case, Caliber.Az reports via Iranian media.

Initially, Sadatinejad and Fatemi Amin were sentenced to five years in prison. However, their sentences were reduced based on Iranian legal provisions. While the sentences are final and cannot be suspended, both former ministers retain the option to appeal the verdicts. This marks a historic development as it is the first time since the 1979 Islamic Revolution that senior cabinet members in Iran have been imprisoned for corruption.

The charges against Sadatinejad and Fatemi Amin stem from their failure to prevent economic disruption in Iran and their role in approving excessive tea imports. They were also accused of neglecting to address applications that allowed for tea smuggling activities, which contributed to a significant financial scandal. The case saw the conviction of other individuals, including Akbar Rahimi, the CEO of Debsh Group. Rahimi, along with others, received sentences ranging from six months to 25 years in prison. 

The scandal, which took place between 2019 and 2022, involved financial mismanagement by Debsh Group and its associates, leading to the improper use of $3.37 billion in US dollars. The funds were originally intended for the import of high-quality tea and machinery into Iran. However, investigations revealed that nearly half of the currency was sold on the open market at a favourable rate for Iranian rial.

By Naila Huseynova