Financial Risk:

Critical

Score:

14/100

Asset Disposals

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Q24 50/100

How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?

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Controls Score: 50 / 100
There is a formal process for asset disposal. It’s set down in the Law Establishing the Organisation of the Collection and Selling Property to…
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Transparency of disposal process Score: 100 / 100
Planned disposals are published on the Organisation for Collection and Sale of State-owned Properties of Iran (OCSSPI) website [1]. Information published, including specific details…
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Transparency of financial results of disposals Score: 0 / 100
It seems the results are not made available to the public, but the price of each item sold is advertised in advance on the…
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Q25 0/100

Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?

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Scrutiny Score: 0 / 100
There is no evidence that asset disposals are scrutinised by an oversight body. According to Reuters, in 2008, Parliament reportedly amended its bylaws to…
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Independence Score: NA / 100
This indicator is marked Not Applicable, as there is no evidence that asset disposals are scrutinised by an oversight body. According to Reuters, in…
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Transparency Score: NA / 100
This indicator is marked Not Applicable, as there is no evidence that asset disposals are scrutinised by an oversight body. According to Reuters, in…
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Secret Budgets

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Q26 0/100

What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?

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Score: 0 / 100
The percentage is not available to the public. No detailed information on expenses and procurement is provided in the budget [1, 2]. Only summary…
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Q27 0/100

Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?

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Score: 0 / 100
Although the legislature can look at classified information, it is unknown if it is provided with information on spending on secret items. No secret…
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Q28 0/100

Are audit reports of the annual accounts of the security sector (the military and intelligence services) subject to parliamentary debate?

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Comprehensiveness Score: 0 / 100
A summary of the annual audit report, compiled by the Supreme Audit Court, is presented to Parliament [1]. However, there is no indication that…
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Parliamentary scrutiny Score: NA / 100
This indicator is marked Not Applicable, as there is no indication that legislators are provided with an audit reports on secret items [1, 2].
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Q29 8/100

In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled? In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?

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Permitted exceptions Score: 0 / 100
Off-budget military spending is permitted. According to Chandler, “First in terms of the pitfalls, the budget that is put together and published is often…
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Recording mechanisms Score: 0 / 100
For the upcoming financial year, off-budget military expenditures were not recorded in the budget.
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Prevalence Score: 25 / 100
There is off-budget military expenditure, as well as illicit economic activity [1], but an explicit link between the two has not been found. For…
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Q30 25/100

Are mechanisms for accessing information from the defence sector effective?

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Legal framework Score: 50 / 100
Iran has a Publication and Free Access to Information Act; however, the publication of information on organs under the supervision of the supreme leader,…
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Classification of information Score: NS / 100
This indicator is not assigned a score in the GDI. There is a 1975 bylaw on the classification of documents. It has four levels…
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Effectiveness Score: 0 / 100
The Publication and Free Access to Information Act was only enacted in 2017 [1]. So far, there is no known instance of the public…
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Q31 25/100

Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?

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Extent of commercial ventures Score: 0 / 100
Defence institutions have ownership of commercial businesses that are major enterprises across all sectors of the economy [1], including banks [2]. It is unknown…
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Transparency Score: 50 / 100
Businesses are known publicly [1], though details of their operations and finances are not transparent.
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Military-owned Businesses

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Q32 25/100

Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?

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Independent scrutiny Score: 50 / 100
Military owned businesses may be subject to some scrutiny, but such processes lack independence or reliability. The Audit Organisation claims that it has audited…
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Transparency Score: 0 / 100
Audit details of military owned businesses are not made available to the public [1].
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Illegal Private Enterprise

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Q33 25/100

Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?

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Prohibition Score: 50 / 100
The government does not outlaw state enterprise under the umbrella of the state’s defence and security institutions, though the current government is discouraging it…
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Prevalence Score: 0 / 100
The government openly operates private enterprises. It is not unauthorised per se. Major sectors of the economy are captured [1]. According to Bjian Khadjepour,…
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Actual Military Spending

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Q77 0/100

Is comprehensive data on actual spending on defence published during the budget year?

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Proactive publication Score: 0 / 100
Reports on actual spending are not made available to the public at all. The only information available to the public relates to that presented…
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Comprehensiveness Score: NA / 100
This indicator is marked Not Applicable, as reports on actual spending are not made available to the public at all. The only information available…
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Timeliness Score: NA / 100
This indicator is marked Not Applicable, as reports on actual spending are not made available to the public at all. The only information available…
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Comparison against budget Score: NA / 100
This indicator is marked Not Applicable, as reports on actual spending are not made available to the public at all. The only information available…
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