Iran is again mired in extensive debate on the depth of corrupt practices in the country. The renewed debate has been sparked by a parliamentary committee’s unveiling of massive corruption at the nation’s largest steel manufacturer. Of further significance, the 297-page report prepared by the committee helps shed light on how economic rents are generated—and distributed.

The synopsis of the report, which the committee presented to the parliament on Aug. 16, points to “rent-seeking, money laundering and corruption” in the Mobarakeh Steel Company (MSC). The document details the company’s illicit transactions between Oct. 2018 and July 2021, outlining the creation of a “chaotic web of ownerships” around affiliated companies, corrupt management and nepotism. It further exposes investments in unlicensed activities, illicit hard currency transactions, insider trading on capital markets, illegitimate market making transactions, ambiguous subcontracting agreements where funds were transferred without any services in return, unauthorized transactions to stakeholders and agreements with foreign subcontractors without observing the legal tender procedures. In addition, the report shows the utilizing of the affiliated Sepahan football club for money laundering...