Iran's President Claims His Admin Exposed $3.5bn Scandal

Iran’s president has said talk will not be enough to resolve the $3.5billion tea scandal in which ministers and officials are implicated.

Commenting on allegations that vast fortunes meant for tea imports have been embezzled, President Ebrahim Raisi claimed his government exposed the scandal nine months ago in publicly broadcast hearings. Iran's Judiciary has recently revealed that several senior officials of Raisi's administration have been implicated in the case.

He also cited Supreme Leader Ali Khamenei's assertion that "just talking about the thefts does not solve the corruption problem".

Accusations in the corruption case implicate numerous government offices spanning both current and past presidential administrations. This includes ministers of agriculture and industry, along with the governors of the Central Bank of Iran and the heads of the Iranian Customs Administration.

Raisi’s comments come as Supreme Leader Ali Khamenei, yet to comment on the case, consistently dismisses assertions of systematic corruption within Iran.

The scandal comes as the government struggles to curb inflation running above 50 percent, coupled with shortages of medicines and powdered baby formula.

Last week, Iran's Inspection Organization disclosed an investigation into a prominent tea importer for questionable financial practices. The company, responsible for a significant portion of the country's tea imports, allegedly received $3.37 billion in foreign currency at a discounted government rate for tea and machinery imports from 2019 to 2022. It is accused of selling $1.4 billion of the currency on the free market at a higher rate.

Alireza Salimi, a member of the parliament, commented on the corruption case saying: "The tea scandal has saddened many; all responsible parties should swiftly provide accurate and truthful information to prevent individuals deeply involved in corruption from taking advantage of the situation."

Observers suggest the developments point to systematic corruption, implicating several high-ranking government officials.