Bonyad-e Mostazafen va Janbazan
Encyclopedia
The Mostazafen Foundation of Islamic Revolution formerly Bonyad-e Mostazafen va Janbazan (Foundation of the Oppressed and Disabled or "MFJ") is a charitable bonyad
, or foundation, in the Islamic Republic of Iran
, the second-largest commercial enterprise in Iran behind the state-owned National Iranian Oil Company
and biggest holding company
in the Middle East. According to one of the foundation’s former directors, Mohsen Rafighdoost
, Mostazafan allocates 50 percent of its profits to providing aid to the needy in the form of low-interest loans or monthly pensions, while it invests the remaining 50 percent in its various subsidiaries. With over 200,000 employees, it owns and operates approximately 350 subsidiary and affiliate companies in numerous industries including agriculture, industry, transportation, and tourism. Bonyad-e Mostazafen va Janbazan represented approximately 10 percent of the Iranian government’s annual budget in 2003. the MJF has an estimated value of more than $3 billion.
It was founded in 1979 as a successor to the Pahlavi Foundation. As an economic, cultural, and social welfare institution, the Foundation controls manufacturing and industrial companies, whose profits are used — according to the foundation — to promote "the living standards of the disabled and poor individuals " of Iran and to "develop general public awareness with regards to history, books, museums, and cinema." The Mostazafen is associated with the Revolutionary Guard where some of its head officials have come from.
A decade after the Revolution, the Foundation’s assets totaled more than $20 billion, and included "some 140 factories, 470 agrobusinesses, 100 construction firms, 64 mines, and 250 commercial companies." By 1994, the Foundation conducted six trillion rials’ worth of business transactions, compared with 5.5 trillion rials collected by the government in taxes. By 1996 the foundation began taking government funds to cover welfare disbursements.
Because of the Iran-Iraq War
, the foundation was given the responsibility to supervise and aid veterans wounded in the war and the name Janbazan (disabled) added to it. Sometime before December 2005 the foundation changed its name back to Bonyad Mostazafan as the "Martyrs and War Veterans Foundation" took over war veterans affairs.
Important Revolutionary Guards who have headed the foundation include Mohsen Rafighdoost
, who served as Minister of the Revolutionary Guards from 1982 to 1989 before heading the foundation until 1999; and Mohammad Forouzandeh
, the chief of staff of the Revolutionary Guard in the late 1980s and later Defense Minister, who is head of the foundation as of 2006.
, transportation, hotels, and commercial services.
It controls 40% of Iran's production of soft drinks, including Zam Zam Cola
which it owns and produces; the newspapers Ettelaat and Kayhan
. It "controls 20% of the country's production of textiles, ... two-thirds of all glass products and a dominant share also in tiles, chemicals, tires, foodstuffs." Its total value was estimated by one source at "as much as $12 billion," by another as "in all probability exceed[ing] $10 billion."
Mostazafan’s largest subsidiary is the Agricultural and Food Industries Organization (AFIO), which owns more than 115 additional companies. Some of the foundation’s contract work also includes large engineering projects, such as the construction of Terminal One of the Imam Khomeini International Airport
.
Mostazafan also has a history of soliciting contract work abroad. It currently maintains economic connections with countries in the Middle East, Europe, Africa, and South Asia, as well as in Russia
and other former states of the Soviet Union.
The Foundation's former head Mohsen Rafiqdoost came under suspicion in 1995 when his brother was convicted of a major bank fraud. After this, Supreme Leader Ali Khamenei
appointed a board of trustees and made the Foundation subject to parliamentary
scrutiny. It has been criticised for allegedly failing to meet the needs of many disabled veterans of the 1980-88 Iran-Iraq war, whose interests it was originally created to serve.
The "most controversial allegation" against the Mostazafen foundation is "whether or not their funds have been used to procure weapons of mass destruction
". This particular allegation "has long surrounded" the Mostazafen foundation because it has been run by "hardliners and former officials of the Revolutionary Guard" (such as former Minister of the Revolutionary Guard Mohsen Rafighdoost
, who ran the foundation from 1989 to 1999.)
In 2003 there was talk of the foundation "spinning off its social responsibilities" and becoming "a purely commercial conglomerate," leaving open the question of who would own it and why it should exist as a foundation.
Bonyad
Bonyads are charitable trusts in Iran that play a significant role in Iran's non-petroleum economy, controlling an estimated 20% of Iran's GDP. Exempt from taxes, they have been called "bloated", and "a major weakness of Iran’s economy", and criticized for reaping "huge subsidies from government",...
, or foundation, in the Islamic Republic of Iran
History of the Islamic Republic of Iran
One of the most dramatic changes in government in Iran's history was seen with the 1979 Iranian Revolution where Shah Mohammad Reza Pahlavi was overthrown and replaced by Ayatollah Ruhollah Khomeini...
, the second-largest commercial enterprise in Iran behind the state-owned National Iranian Oil Company
National Iranian Oil Company
The National Iranian Oil Company , a government-owned corporation under the direction of the Ministry of Petroleum of Iran, is an oil and natural gas producer and distributor headquartered in Tehran. It was established in 1948...
and biggest holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
in the Middle East. According to one of the foundation’s former directors, Mohsen Rafighdoost
Mohsen Rafighdoost
Mohsen Rafighdoost is an Iranian official, the Director of the Noor Foundation.-Background:Rafighdoost's background is that of a bazaari, the traditional class of people who work in the bazaar...
, Mostazafan allocates 50 percent of its profits to providing aid to the needy in the form of low-interest loans or monthly pensions, while it invests the remaining 50 percent in its various subsidiaries. With over 200,000 employees, it owns and operates approximately 350 subsidiary and affiliate companies in numerous industries including agriculture, industry, transportation, and tourism. Bonyad-e Mostazafen va Janbazan represented approximately 10 percent of the Iranian government’s annual budget in 2003. the MJF has an estimated value of more than $3 billion.
It was founded in 1979 as a successor to the Pahlavi Foundation. As an economic, cultural, and social welfare institution, the Foundation controls manufacturing and industrial companies, whose profits are used — according to the foundation — to promote "the living standards of the disabled and poor individuals " of Iran and to "develop general public awareness with regards to history, books, museums, and cinema." The Mostazafen is associated with the Revolutionary Guard where some of its head officials have come from.
Pahlavi Foundation
Muhammad Reza Shah Pahlavi established the Pahlavi Foundation as a tax-exempt charity in 1958. This foundation held the assets of Muhammad Reza Shah, his predecessor, and many of his family, who later served on the corporate board and received commissions. The Pahlavi Foundation’s wealth was estimated at $3 billion at its height. The Pahlavi Foundation was dogged by accusations of corruption.Mostazafen Foundation
Following the Islamic Revolution, the Pahlavi Foundation was renamed the Bonyad-e Mostazafen (Foundation of the Oppressed), and its economic assets increased by more than double after the property of fifty millionaires was confiscated and added to the endowment.A decade after the Revolution, the Foundation’s assets totaled more than $20 billion, and included "some 140 factories, 470 agrobusinesses, 100 construction firms, 64 mines, and 250 commercial companies." By 1994, the Foundation conducted six trillion rials’ worth of business transactions, compared with 5.5 trillion rials collected by the government in taxes. By 1996 the foundation began taking government funds to cover welfare disbursements.
Because of the Iran-Iraq War
Iran-Iraq War
The Iran–Iraq War was an armed conflict between the armed forces of Iraq and Iran, lasting from September 1980 to August 1988, making it the longest conventional war of the twentieth century...
, the foundation was given the responsibility to supervise and aid veterans wounded in the war and the name Janbazan (disabled) added to it. Sometime before December 2005 the foundation changed its name back to Bonyad Mostazafan as the "Martyrs and War Veterans Foundation" took over war veterans affairs.
Important Revolutionary Guards who have headed the foundation include Mohsen Rafighdoost
Mohsen Rafighdoost
Mohsen Rafighdoost is an Iranian official, the Director of the Noor Foundation.-Background:Rafighdoost's background is that of a bazaari, the traditional class of people who work in the bazaar...
, who served as Minister of the Revolutionary Guards from 1982 to 1989 before heading the foundation until 1999; and Mohammad Forouzandeh
Mohammad Forouzandeh
Mohammad Forouzandeh is the head of the Bonyad-e Mostazafen va Janbazan, or Foundation of the Oppressed and Disabled, the second-largest commercial enterprise in Iran and biggest holding company in the Middle East. His tenure as head of the foundation was renewed "for another five years" on...
, the chief of staff of the Revolutionary Guard in the late 1980s and later Defense Minister, who is head of the foundation as of 2006.
Economic activity
The Foundation is involved in numerous sectors of the economy, including shipping, metal, petrochemicals, construction materials, dams, towers, farming, horticulture, tourismTourism in Iran
Tourism attracted 2.3 million people to Iran in 2009. Iran plans to have 20 million tourists annually by 2015 ....
, transportation, hotels, and commercial services.
It controls 40% of Iran's production of soft drinks, including Zam Zam Cola
Zam Zam Cola
Zam Zam Cola is a cola-flavoured soft drink produced in Iran by Zamzam Soft Drink Mfg. Co.It is particularly popular in Iran and parts of the Arab World, having gained a cult status there as a Muslim alternative to "Western" products such as Coca-Cola and Pepsi...
which it owns and produces; the newspapers Ettelaat and Kayhan
Kayhan
Kayhan is an influential newspaper in Iran. Directly under the supervision of the Office of the Supreme Leader, it is regarded to be "the most conservative Iranian newspaper."...
. It "controls 20% of the country's production of textiles, ... two-thirds of all glass products and a dominant share also in tiles, chemicals, tires, foodstuffs." Its total value was estimated by one source at "as much as $12 billion," by another as "in all probability exceed[ing] $10 billion."
Mostazafan’s largest subsidiary is the Agricultural and Food Industries Organization (AFIO), which owns more than 115 additional companies. Some of the foundation’s contract work also includes large engineering projects, such as the construction of Terminal One of the Imam Khomeini International Airport
Imam Khomeini International Airport
Imam Khomeini International Airport is located in Ahmadabad, Iran. The airport is located about southwest of the city near the localities of Robat-Karim and Eslamshahr. It was designed to replace Mehrabad International Airport, which is in the west of the city, now inside the city boundaries...
.
Mostazafan also has a history of soliciting contract work abroad. It currently maintains economic connections with countries in the Middle East, Europe, Africa, and South Asia, as well as in Russia
and other former states of the Soviet Union.
Controversies
As employers of approximately five million Iranians and providers of social welfare services to "perhaps several million more", bonyads such as Mostazafen "have a large constituency and are able to build support for the regime among the working and lower classes." Nonetheless the Foundation has been subject to a number of controversies common to other bonyads in the years since its inception. The Foundation and other bonyads are “exempt from official oversight as key religious leaders and former or current government officials control them. They enjoy virtual tax exemption and customs privileges, preferential access to credit and foreign exchange, and regulatory protection from private sector competition.”The Foundation's former head Mohsen Rafiqdoost came under suspicion in 1995 when his brother was convicted of a major bank fraud. After this, Supreme Leader Ali Khamenei
Ali Khamenei
Ayatollah Seyed Ali Hoseyni Khāmene’i is the Supreme Leader of Iran and the figurative head of the Muslim conservative establishment in Iran and Twelver Shi'a marja...
appointed a board of trustees and made the Foundation subject to parliamentary
Majlis
' , is an Arabic term meaning "a place of sitting", used in the context of "council", to describe various types of special gatherings among common interest groups be it administrative, social or religious in countries with linguistic or cultural connections to Islamic countries...
scrutiny. It has been criticised for allegedly failing to meet the needs of many disabled veterans of the 1980-88 Iran-Iraq war, whose interests it was originally created to serve.
The "most controversial allegation" against the Mostazafen foundation is "whether or not their funds have been used to procure weapons of mass destruction
Weapons of mass destruction
A weapon of mass destruction is a weapon that can kill and bring significant harm to a large number of humans and/or cause great damage to man-made structures , natural structures , or the biosphere in general...
". This particular allegation "has long surrounded" the Mostazafen foundation because it has been run by "hardliners and former officials of the Revolutionary Guard" (such as former Minister of the Revolutionary Guard Mohsen Rafighdoost
Mohsen Rafighdoost
Mohsen Rafighdoost is an Iranian official, the Director of the Noor Foundation.-Background:Rafighdoost's background is that of a bazaari, the traditional class of people who work in the bazaar...
, who ran the foundation from 1989 to 1999.)
In 2003 there was talk of the foundation "spinning off its social responsibilities" and becoming "a purely commercial conglomerate," leaving open the question of who would own it and why it should exist as a foundation.
External links
- Bonyad-e Mostazafen va Janbazan (official website)