BRIEF  ON  IRAN
        No. 221
        Tuesday, August 1, 1995


        Representative Office of
        The National Council of Resistance of Iran
        3421 M Street NW #1032
        Washington, DC 20007


Economic Improvements Called Bogus, Radio Israel, July 26

        People ask, when most authorities announce in the news
media that the prices of all goods are decreasing why don't they
ever say anything regarding the continued increase in food
prices?...
        People are right.  While the exchange rate is decreased 40%,
the food is still expensive.
        According to this report, when dollar was exchanged for
7,000 rials, the price of chicken was 4,500 rials/kg. and red meet
was 7,500 rials/kg.  And now that dollar is exchanged at the rate
of 3,000 rials the chicken meet is more than 4,500 rials/kg. and
red meet is sold at 10,000 rials/kg.



Commentary

Century's Biggest Theft

One of the hottest news of Iran these days is an embezzlement
case domestically called "the biggest theft of the century." Four
years after the "billion-dollar" crime,*  the perpetrators, including
the brother of the head of Bonyad-e Mostaz'afan (Foundation for
the Poor), the biggest business conglomerate which manages
much of the Iran's industry and services, are finally put on trial.
Beyond embezzlement, their charge is bankrupting the country's
economy by illegal exchange of foreign currency. The trial has
also become the battle ground for the regime's rival factions.
In the Friday prayer sermon of Qom on July 21, Ali Meshkini,
chair of the clerical Assembly of Experts, called the fraud, "an
unprecedented crime and treason" which "is not the work of one
or two people."
In another part of his speech, Meshkini assailed the judiciary
officials and warned them against "showing leniency" in this case
and advised them to beware of getting involved. "If you show
leniency at this stage, people will accuse the Judiciary of
complicity in this treachery."
In the meantime, Mohammad Yazdi, the Chief Justice, used the
podium of Tehran's Friday Prayer to defend the criminals and
put down the fraud's significance: "The only thing missing was a
65-billion rial item, which has been already found. And the only
reason we are conducting this trial is because the crime had been
committed by a band and had extremely adverse impact. The
case is being examined to determine the legal infringements and
the punishments."
On July 22, while Mohsen Rafiqdoust, himself, had been
summoned to the court to testify about the large checks he had
contributed to those charged, the mullahs' leader, Ali Khamenei,
appointed a board of trustees to run the affairs of the Foundation
for the Poor, in a face saving gesture to limit Rafiqdoust's
authorities. The Iranian Resistance sources in Iran have reported,
however, that Rafiqdoust has welcomed Khamenei's measure as a
step towards "resolving and answering the problems." The
sources also said that the members of the newly appointed board
of trustees are all members of a group called Motalefeh which
acts as a Mafia-type band within the regime. Khamenei's measure
is therefore considered as a ploy to curb the fury of a nation, 70-
80% of whom are living below the poverty line.

* The dollar exchange rate was 1200 rials at the time.