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In the latest chapter of Iran’s ongoing corruption saga, revelations of billions of dollars in missing medicine subsidies have intensified public outrage, underscoring the systemic fraud that permeates the clerical regime. On January 11, 2025, the Iranian regime’s president Masoud Pezeshkian admitted, “A portion of the allocated currency for medicine subsidies simply vanishes,” in remarks that seemed to deflect responsibility while exposing the government’s inability—or unwillingness—to tackle the crisis. His admission comes amid a 200–400% spike in drug prices, with essential medications either scarce or sold at exorbitant rates, forcing millions of Iranians into desperation.
This is not the first time Pezeshkian has acknowledged such glaring governance failures. Just weeks earlier, on December 18, 2024, he addressed another alarming issue: the disappearance of 20 million liters of fuel every day. “How do 20 million liters of fuel vanish daily?” he asked rhetorically during an unscheduled visit to the Budget and Planning Organization. “I must be utterly incompetent if I can’t oversee this.” While his remarks carried a tone of sarcasm, they highlighted the staggering scope of corruption and the regime’s systemic inability to maintain oversight.
The fuel theft scandal sheds light on the vast criminal networks operating under the regime’s watch. In Hormozgan Province, authorities uncovered a clandestine two-kilometer pipeline siphoning 70,000 liters of aviation fuel daily for years. “The value of the illegal pipeline alone is approximately four billion tomans,” a local judiciary official admitted, though no explanation was offered for how such large-scale theft escaped detection for so long. Meanwhile, reports of oil thefts from pipelines near Tehran and other regions continue to surface, painting a grim picture of widespread resource plundering.
Delving into #Iran’s Corruption Chronicles – Part 1https://t.co/3uRDWFAqxD
— NCRI-FAC (@iran_policy) December 18, 2023
The issue of missing funds is not limited to fuel and medicine. In Iran’s petrochemical sector, discrepancies totaling $9.3 billion between customs figures and industry reports have raised serious questions. Customs authorities claimed $19.7 billion in exports over the first nine months of the year, but industry insiders argue the real figure is closer to $10.4 billion. “The gap—26.8 million tons of products worth $9.3 billion—must be explained,” said Fereydoun Asgari, a petrochemical executive. Critics suspect these discrepancies result from misreporting and exploitation of trade codes, with vast sums diverted to enrich regime elites.
Such scandals are symptomatic of Iran’s deeply entrenched culture of corruption, where unaccountable power structures like the Islamic Revolutionary Guard Corps (IRGC) dominate key sectors of the economy. The IRGC’s involvement in fuel, exports, and infrastructure has allowed it to amass wealth while diverting public resources for its military and political objectives. Supreme Leader Ali Khamenei’s control over vast economic empires further entrenches this system of exploitation.
Pezeshkian’s remarks, far from signaling reform, appear to be part of a broader strategy to shift blame and dodge accountability. His sarcastic tone—“I must be utterly incompetent”—rings hollow when viewed against decades of corruption and mismanagement in which he and other regime officials have been complicit. Critics argue that such statements are carefully crafted to pacify public outrage without addressing the root causes of corruption.
#Iranian Regime’s Shadowy Deals with #China Highlight Corruption and Sanctions Evasionhttps://t.co/iTglfofTrA
— NCRI-FAC (@iran_policy) May 7, 2024
From disappearing fuel and medicine subsidies to billions in unaccounted petrochemical revenues, the regime’s failures exacerbate the daily struggles of ordinary Iranians. Inflation has eroded purchasing power, essential goods are increasingly unaffordable, and public services are deteriorating. While Transparency International consistently ranks Iran among the world’s most corrupt nations, the scale and brazenness of these scandals set the regime apart.
In a rare moment of candor, Pezeshkian summed up the regime’s approach: “In a world where everything is tracked, how do 20 million liters of fuel disappear daily? That’s our ‘art.’” This “art” of corruption, embezzlement, and mismanagement continues to define the clerical regime, eroding trust both domestically and internationally. For the Iranian people, the consequences of these systemic failures are dire, as the regime prioritizes self-preservation over their well-being.