Following rising controversy, Iranian lawmakers on Apr. 30 sacked the minister of industry, mining and trade. Prior to his impeachment, Reza Fatemi Amin had faced severe criticism from MPs and other stakeholders with a focus on the poor performance of the automotive sector. The political reasons for the dismissal have previously been covered by Amwaj.media. However, the debacle is also important as it sheds light on how corrupt networks undermine the potential of the Iranian economy.

Corruption comes to light

The prevalence of corrupt practices in the automotive sector is not a secret in Iran. For example, in 2018, MP Abolfazl Aboutorabi stated, “We are dealing with incompetent managers who run the industry at high cost. Rent [seeking] and corruption are rampant in the imports and production of the sector.”

More recently, Fatemi Amin prior to his dismissal last month referred to a mafia network in the domestic auto industry. However, he never elaborated on what the alleged network consists of—and how it...