Minister Says ‘Trump’s Sanctions’ Have Impoverished Iran
As two major corruption cases became the main headlines in Iran this week, the minister of economy blamed economic stagnation on “Trump’s sanctions.”
As two major corruption cases became the main headlines in Iran this week, the minister of economy blamed economic stagnation on “Trump’s sanctions.”
Ehsan Khandouzi, speaking to university students, reluctantly admitted that successive administrations have mishandled the economy, but insisted that US sanctions imposed in 2018, wiped out economic growth and “led to today’s high inflation.”
“The sanctions during the Trump era caused the country's economy to decline, and inflation is now the legacy of the sanctions in recent years. These sanctions have affected the purchasing power of households,” Khandouzi insisted.
No one truly knows the real annual inflation rate, since the government stopped issuing periodic reports in 2019, but occasional figures announced by officials show that inflation is above 50 percent, and food prices have increased much faster.
Khandouzi referred to 2011, when he said the national income had reached an all-time high, but he did not mention that skyrocketing oil prices were the reason why the country had disposable income more than a decade ago. In contrast, currently there is not enough foreign currency to import raw materials for producing medications and people must go from pharmacy to pharmacy to find a can of baby formula.
One student asked the minister if “you want to drag everyone into poverty,” to which the minister gave a condescending answer. “When I was a student like you 25 years ago, I was also a critic, but one expects students to ask more sophisticated and analytical questions,” Khandouzi replied. He then went on to tell the students that the ministry of economy has set up a summer school and they are welcome to attend the courses and learn economics.
Meanwhile, the minister admitted that the Islamic Republic in the past 20 years has completely mishandled its banking sector and now several institutions are on the verge of bankruptcy. He also acknowledged that the government is afraid of protests if banks go under, and depositors demand their money. For this reason, the government prefers to dissolve these institutions into the Central Bank of Iran, a strange arrangement for any country.
However, Khandouzi did not mention that there no true private sector banks in Iran. The so-called non-governmental banks are in fact institutions set up by public entities or by regime insiders who have political influence and therefore have immunity from supervision.
Insider dealings became once again public scandals this week. A company dealing with tea imports misused up to $3.5 billion it received from the government at preferential rate of exchange. Instead of importing tea and machinery as expected, the company sold dollars on the open market at much higher rates. Despite pledges by top officials to investigate and address the fraud, so far, no prominent person has been detained. Some local media outlets say that without the complicity of top officials such a fraud would not have been possible.
At the same time, members of Tehran’s municipal council are asking about more than $300 in city revenues that has “disappeared”, meaning there is no trace of the money in budget allocations. This is a substantial sum of money in Iran, equaling 170 trillion rials.
The minister of economy did not address the corruption scandals during his meeting with the students. He tried to argue that the economy has improved in the past two years during the reign of hardliners. President Ebrahim Raisi also presented rosy figures to parliament earlier this week. One lawmaker commented after the meeting that “The president seemed to be talking about a different country.”
The Canada-based non-profit has urged the international community to investigate this type of torture and deaths resulting from it in Iran. “The Islamic regime in Iran must be held accountable for its crimes against political prisoners,” a recent report by CFPPI, said.
Pharmacological torture is the use of psychoactive, psychotropic drugs or other types of drugs to punish, extract information, or to subdue prisoners into compliance by causing distress in the form of pain, anxiety, panic, psychological disturbances, immobilization, hallucination, paranoia, disorientation, and addiction without leaving obvious physical signs of violence.
CFPPI has said in its report that it conducted extensive investigations that indicated an alarming increase in the use of pharmacological torture in Iran in the past five year and particularly since Women, Life, Freedom protests that began in late September 2022. Their findings draw on testimonies of those arrested during the protests of 2022-2023 as well as on the accounts of former political prisoners.
According to CFPPI's report, the regime has intentionally and systematically subjected more political prisoners to pharmacological torture by sending detainees to mental hospitals and forcibly administering anti-psychotic drugs at multiple prisons across the country, as well as by mixing drugs into their food and drinks.
“Whereas formerly, prison guards would offer sedatives to prisoners, which many of the younger and newer prisoners voluntarily accepted to ease their experience, new reports suggest that since September 2022 the practice has changed to violent and coercive administering of unwanted drugs,” the report said.
One of the victims interviewed for the report, a 27-year-old woman who said she had been raped several times during her detention, told CFPPI that she was forced into taking unidentified pills which had a profound impact on her, leading to psychotic episodes. After her release from prison, she attempted to take her own life and lost one of her kidneys.
Prisoners say they have also noted serious pains and aches in the absence of the drugs.
Dissident rapper Saman Seydi (Yasin) is among political prisoners who have spoken up about their tortures including administration of unidentified pills and injections at a very high cost. He has been sentenced to death and is still in prison.
Yasin was held at a mental hospital on the orders of the notorious judge Abolghasem Salavati for four days as punishment for smuggling out an audio file from Tehran’s Evin Prison in which he described tortures including being subjected to mock execution.
At the mental hospital where he was tied to the bed, security forces beat him for refusing to allow them to inject him with an unknown substance. Yasin claims he fell unconscious for 24 hours after the injection and has been having problems with his eyesight and balance since then.
Yasin’s torturers, he says, wanted to force him to “confess” to possession and use of a firearm during last year’s protests.
In several other cases in the past year, detainees including young protesters have died soon after their release from prison under suspicious circumstances.
Pressure on victims’ families to accept “suicide”, “sudden death”, or “overdose” as cause of death of individuals with no prior record of major health problems, depression or addiction has raised suspicions that the deaths may have resulted from pharmacological torture.
“Pharmacological torture is extremely distressing and punitive as it causes severe physical pain, harmful and painful physiological changes, confusion, perceptual abnormalities, fearfulness and anxiety, lethargy, and loss of personal agency,” William Hopkins, Consultant Psychiatrist at Freedom from Torture who has worked to rehabilitate survivors of pharmacological torture from various countries is quoted by the report as saying.
Reuters reported Thursday that deputy national security adviser Jon Finer has said that the Biden administration thinks the IRGC is behind the attacks, helping with planning and action.
"We believe that they are involved in the conduct of these attacks, the planning of them, the execution of them, the authorization of them and ultimately they support them," he told the Aspen Security Forum.
This is the first time the IRGC is directly linked to Houthi operations by a US official.
US National Security spokesman John Kirby took Iran to task on Wednesday for destabilizing the region by providing financial and military assistance to extremist militant groups, such as Yemeni Houthis.
“We know that the Houthis are supported by Iran, not just politically and philosophically but, of course, with weapon systems,” he stressed.
The Biden administration has been trying to avoid conflict with Iran ever since Hamas forces attacked Israel, fearing that the war on Gaza could expand and set the whole region ablaze.
A Politico report Wednesday suggested that senior Biden administration officials were against targeting Houthis for now, despite the marked increase in Houthi activities in the Red sea, which has forced two US warships to engage militarily.
On Wednesday, the USS Mason intercepted and shot down a drone launched from a Houthi-controlled area. Three days earlier, USS Carney shot down three drones after it received distress calls from vessels that had come under attack from Iran-backed Houthis in the Red Sea.
The Houthis say their attacks are in response to the Israeli onslaught on Gaza, which began after Hamas rampaged Israel on 7 October, killing a thousand people.
On Thursday, the US treasury sanctioned 13 people and entities over claims they provided “tens of millions of dollars” in Iran-linked funds to Houthi rebels in Yemen.
“The Houthis continue to receive funding and support from Iran,” the under secretary of the Treasury for terrorism Brian Nelson said. “Treasury will continue to disrupt the financial facilitation and procurement networks that enable these destabilizing activities.”
Iran of course denies involvement in the missile and drone attacks by the Houthis on Israel and vessels in the Red Sea. The official line from the regime spokespersons is that militant groups linked with Tehran act independently.
Earlier in the week, a senior adviser to Ali Khamenei said the same about Hamas – that the group had the means necessary to plan and execute operations, notwithstanding the fact, he suggested, that Iran would help the group militarily if it had access to Gaza Strip.
Asked about the future of the conflict and the hopes for a two state solution between Israel and the Palestinians, Kamal Kharrazi told Aljazeera, “this is their own business, of course. We have our own positions but we’re not going to dictate our positions to others.”
The former foreign minister of the Islamic Republic reiterated, however, that the regime didn’t “believe in” a two state solution. “Israel itself is not supporting this plan… and it’s not practical,” Kharrazi said, “We believe the final solution must be one state, composed of Muslims, Christians and Jews.”
The Islamic Republic has for long maintained this ambiguous, sit-on-the-fence politics, sending mixed messages on their intentions and their actions. In recent years, this has been largely helped by the Biden administration’s leniency, which many in Washington say has emboldened the regime and its proxies in the region.
“It [is] President Biden who refuses to respond to the recent attacks on American troops by Iran in Syria, in Iraq, in the Red Sea,” Senator John Kennedy told Fox News Thursday.
“The sad reality is that our enemies - China, Russia, North Korea, Iran - are not scared of President Biden. And for good reason," he said. “The Biden administration would rather debate whether man can breastfeed than protect the interests of this country.”