Three-minute read
Each week, retired employees of the Telecommunication Company of Iran (TCI) protest in the streets of cities like Ahvaz, Isfahan, and Kermanshah, accusing powerful state-affiliated conglomerates of depriving them of their rightful pensions. Their chants target one organization above all: the Execution of Imam Khomeini’s Order (EIKO), known in Persian as Setad Ejraiye Farmane Emam.
The grievances focus on the privatization and subsequent management of TCI, a formerly state-owned enterprise privatized in 2009 in a controversial process that transferred majority control not to the private sector, but to entities closely tied to the Islamic Revolutionary Guard Corps (IRGC) and the Office of Iran’s Supreme Leader.
Privatization Under a Controlled Structure
In 2009, as part of a government-mandated privatization effort under Article 44 of the regime’s Constitution, 51% of TCI shares were sold to the Etemad-e-Mobin Consortium for approximately 7.8 trillion tomans (around $8 billion at the time).
The consortium was composed of:
-
Tose’e Etemad Investment Company (linked to Setad/EIKO),
-
Shahriar Mahestan Investment Company (affiliated with the IRGC’s Basij Cooperative Foundation),
-
Mobin Electronic Development Company (linked to Setad/EIKO).
#Iran: Power Outages in #WINTER, a Result of the Regime’s Plundering Policies, Especially of the Revolutionary Guards & Khamenei’s Institutions.
IRGC and Khamenei-affiliated institutions have acquired thousands of Bitcoin miners into the country. #Iranianhttps://t.co/llzQOlfSsY— NCRI-FAC (@iran_policy) January 15, 2021
While formally labeled a “privatization,” the process was widely criticized — including by the Iranian regime’s Parliament and the Competition Council — for lacking transparency and effectively transferring a state monopoly into the hands of semi-governmental entities.
The only serious private competitor, Pishgaman Kavir Yazd Cooperative, was disqualified on alleged “security grounds” the day before the auction, leaving the field open for regime-affiliated bidders.
Strategic Value and Subsequent Transfers
Owning TCI granted control over Iran’s largest telecommunications infrastructure, including the country’s main mobile operator, Hamrah Aval (MCI). This provided a lucrative and steady cash flow, vital for entities seeking hard currency revenue amid tightening sanctions.
Following the United States’ withdrawal from the JCPOA in 2018 and the reimposition of financial sanctions, the IRGC began consolidating and insulating its economic interests. In late 2018, the IRGC divested its stake in the Etemad-e-Mobin Consortium, transferring ownership to Setad/EIKO, citing “strategic restructuring under the Armed Forces General Staff’s guidance.”
As a result, Setad/EIKO became the dominant owner of TCI, controlling the 51% majority share.
Like other industries in this rich nation, Iran’s Pharmaceutical Industry has been monopolized by the IRGC and foundations linked to the regime’s Supreme Leader, Ali Khamenei. One of these foundations is the Execution of Imam Khomeini’s Order (EIKO)https://t.co/7w1T974Iie
— NCRI-FAC (@iran_policy) July 20, 2022
Setad/EIKO’s Economic Network and Sanctions Evasion
Setad operates as an economic conglomerate through an array of subsidiaries, including:
-
Tadbir Economic Development Group,
-
Mobarakeh Electronic Industries,
-
Gostaresh Electronic Mobin,
-
Iranian Net,
-
Asman Media,
-
Talia Mobile Operator,
-
Mobin One Kish,
-
Rakhkam Iranian Communications, among others.
In 2013, a Reuters special investigation estimated the value of Setad’s combined assets — real estate, corporate stakes, and financial holdings — at $95 billion.
In 2019, U.S. officials updated the estimate, asserting that Khamenei’s empire, primarily through Setad, controlled approximately $200 billion in assets. This wealth far exceeds Iran’s annual oil export revenues, highlighting Setad’s role as a financial engine for Iran’s ruling elite.
Inside Iran’s Army of Terror and Oppression: Revolutionary Guards (#IRGC) – Part 2
An in-depth look at the IRGC’s financial empire#Iran #terrorism #NoImpunity4Mullahs
https://t.co/jxGBjydghm pic.twitter.com/ABWhVjuNHj— NCRI-FAC (@iran_policy) December 30, 2020
To obfuscate its operations and evade sanctions, Setad utilizes layered ownership structures through “front companies” and minority stakeholdings. In June 2013, the U.S. Treasury Department sanctioned Setad and 37 of its affiliated companies under Executive Order 13599, citing their role in facilitating the Iranian leadership’s circumvention of international financial restrictions.
Sanctioned entities include:
-
Tadbir Economic Development Group (investment arm),
-
Mobarakeh Electronics,
-
Gostaresh Electronic Mobin, among others.
The Treasury described Setad as “a massive network of front companies hiding assets on behalf of Iran’s leadership.”
#Iran: Plundering, Backed by Revolutionary Guards and Khamenei's Office https://t.co/EKSJreioDq pic.twitter.com/J5pEx6T6AK
— NCRI-FAC (@iran_policy) June 1, 2017
Impact on Iranian Citizens
Meanwhile, retirees from TCI, many of whom had dedicated decades to building Iran’s telecommunications infrastructure, struggle to survive. Protesters have alleged that the mismanagement of pension funds and operational revenues by EIKO-led management has led to delayed or reduced payments, with some retirees reporting receiving only a fraction of their entitled benefits.
Public demonstrations now frequently feature slogans denouncing Setad’s role in the “plundering” of the pension funds and demanding governmental accountability.
The privatization of Iran’s Telecommunication Company stands as a case study of how entities tied to the regime’s Supreme Leader Ayatollah Ali Khamenei, notably Setad, have systematically absorbed critical sectors of the Iranian economy under the guise of reform.
This structure not only deprives ordinary Iranians of their economic rights but also provides the regime with a financial apparatus to bypass international sanctions. Further scrutiny and enforcement actions targeting Setad’s expanding network could be key steps in limiting the Iranian leadership’s access to global markets and financial resources.