Procurement Risk:
Critical
Score:
4/100
Government Policy
Q57
0/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
View Question
This indicator is not assigned a score in the GDI. The armed forces have their own tender legislation, but it allows for exemptions. Article…
Explore
Legislation covering defence and security procurement does not make reference to corruption risks [1].
Explore
The effectiveness of the legislation is doubtful. The exceptions which the legislation allows for are high in number, therefore in practice may well be…
Explore
Q58
0/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
View Question
The defence procurement cycle is not formalised at all but, rather, in practice works through illicit networks [1]. There was an attempt to formalise…
Explore
The defence procurement cycle is not disclosed. Defence procurement itself is only disclosed in a very abbreviated fashion and on an ad-hoc basis [1,…
Explore
The defence procurement cycle is not formal but, rather, works through illicit networks [1]. There was an attempt to formalise procurement for the nuclear…
Explore
Q59
0/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
View Question
There are no formal procurement oversight mechanisms. The Tender Law provides for a Tenders Committee to examine bids, and a complaints committee, which is…
Explore
This indicator is marked Not Applicable, as there are no formal procurement oversight mechanisms [1].
Explore
This indicator is marked Not Applicable, as there are no formal procurement oversight mechanisms [1].
Explore
Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
View Question
There are laws and procedures that briefly describe how the government discriminates in its selection of suppliers and sub-contractors, but these relate to the…
Explore
This indicator is marked Not Applicable, as there are no laws or procedures requiring suppliers and sub-contractors to sign anti-corruption clauses. There are laws…
Explore
Q63
0/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
View Question
The defence strategy is not public; therefore, it may be secret. A civil defence national security document was unveiled in October 2014 but was…
Explore
The Parliament’s Defence Committee [1], as well as the Foreign Policy and National Security Committee [2, 3], seem to be involved in securing defence…
Explore
It is difficult to measure against the national security strategy, given that it is not public, but purchases are often illicit [1, 2], and…
Explore
Tender Solicitation, Assessment and Contract Award
Q64
0/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
View Question
Defence procurement which depends on foreign suppliers is mainly conducted illicitly given that Iran is under an international arms embargo [1]. Iran has an…
Explore
There is no evidence of existing oversight agencies for single or restricted competition procedures, although a complaints board is granted in the Armed Forces…
Explore
Q65
13/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
View Question
The primary regulation governing tender boards is the Law on Tenders of the Armed Forces. This law allows for the setting up of a…
Explore
While the General Inspection Organisation (GIO) can supervise and inspect the administrations of the armed forces [1], there is no evidence that audits of…
Explore
Tender board regulations are only partially transparent. There is a procedure for the armed forces to follow, and this is set out in the…
Explore
While the General Inspection Organisation (GIO) can supervise and inspect the administrations of the armed forces [1], there is no evidence that audits of…
Explore
Q66
17/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
View Question
The Armed Forces Tenders Law addresses collusion, but the provision is not developed. It merely states that the consequences for the tender (i.e. that…
Explore
There is nothing in the Armed Forces Tender Law [1] or the Islamic Penal Code [2] to indicate that procurement officials have the authority…
Explore
This indicator has been scored Not Applicable. No evidence of investigative or prosecution cases was found [1, 2].
Explore
No evidence was found indicating that procurement officials are trained to identify collusion patterns and report potential malpractice [1].
Explore
Contract Delivery and In-Service Support
Q67
6/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
View Question
There are no known formal policies or procedures that outline how to monitor, assess and report upon a supplier’s service and delivery obligations [1,…
Explore
Information is occasionally released on contract failures with international suppliers [1]. For example, Ali Akbar Salehi, head of Iran’s nuclear agency, in relation to…
Explore
There is little information publicly available about procurement offices and reporting and delivery obligations. The State Purchasing Organisation is reported as facilitating weapons imports…
Explore
Breaches of a contract with international suppliers are often acted upon. For example, Russia and Iran signed a contract for the delivery of five…
Explore
Q68
17/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
View Question
A complaints board is set out in the Rules for Organising Tenders for the Armed Forces law. Its provisions are vague and weak. Companies…
Explore
The complaints mechanism is likely to be inefficient, given that the provisions governing the mechanism are rather vague and quite weak [1]. In a…
Explore
There is no evidence of companies complaining, but as the above answer pointed out more than 72 per cent of respondents in a survey…
Explore
There is no indication that procurement officials have the authority to exclude companies and individuals implicated in bribery or corruption related offenses [1].
Explore
This indicator is marked Not Applicable, as there is no indication that procurement officials have the authority to exclude companies and individuals implicated in…
Explore
This indicator is marked Not Applicable, as there is no indication that procurement officials have the authority to exclude companies and individuals implicated in…
Explore
Offset Contracts
Q70
0/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
View Question
As Iran is not known to have offset contracts, there are no formal policies or procedures that outline the reporting and delivery obligations for…
Explore
As Iran is not known to have offset contracts, the government does not make any details about off-set contracts transparent/known [1, 2, 3].
Explore
Iran is not known to have offset contracts, therefore there is no knowlewledge of procurement offices conducting reporting and delivery obligations of offset contracts…
Explore
As there are no known offset contracts in place, breaches of contract are not acted upon [1, 2, 3].
Explore
As mentioned in Q71, there is no publicly available evidence to indicate that Iran has offset contracts [1, 2, 3]. At the moment, and…
Explore
Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
View QuestionFinancing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
View Question
Details of any financing package are never made publicly available. No information related to financing and and arms deals is provided [1, 2].
Explore
Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
View Question
This indicator is not assigned a score in the GDI. The most sought-after acquisitions are not granted as a result of political influence by…
Explore
This indicator is not assigned a score in the GDI. Usually, the discourse of military officials to the state is that they are self-sufficient…
Explore
This indicator is not assigned a score in the GDI. In relation to domestic research and development and production, these decisions are largely driven…
Explore