The Latest from Iran (1 October): Problems with Banks and Oil

See also The Latest from Iran (30 September): Where's the President's Right-Hand Man?

---

1845 GMT: Cyber-Question of Day. So who is behind the fake BBC Persian website, with the lead story that its editor raped a female employee, but she returned to work?

1835 GMT: Do You Think the Supreme Leader Knows? Hours after Ayatollah Khamenei opened Tehran's International Conference on the Palestinian Intifada by denouncing the Palestinian Authority's leadership, including Mahmoud Abbas, and its approach to the UN for recognition of Palestinian leadership, Hamas leader Khaled Meshaal sang a different tune, even in the cautious wording of the Tehran Times....

The article frames Meshaal's position as "the plan presented by Palestinian Authority President Mahmoud Abbas is worth mulling over", but in expressing his criticism that "the United States and the Zionists exposed their true face as they have started efforts to stymie the plan", the site portrays support for his Palestinian rival:

Meshaal said Abbas is resisting pressure exerted by the U.S. and Israel. “In this moment of history that the true face of the Zionists has been revealed, Mahmoud Abbas and our brothers in the Fatah movement as well as other independent figures should make efforts to achieve unity,” the Hamas political leader stated.

1525 GMT: Economy Watch. Emad Hosseini of Parliament's Energy Commission has said that the Government budget lacks 150 billion tomans ($130 million) to pay support payments for subsidy cuts. He added that the file of an alleged $11.2 billion of missing oil revenue is "pending".

1515 GMT: Bank Fraud Watch. How about another drama in the $2.6 billion bank fraud? The head of the Central Bank, Mahmoud Bahmani, has claimed that he ordered the dismissal of the Chief Executive Officer of Bank Saman, Vali Zarabieh --- Bank Saman has responded that a change of CEO is impossible.

1505 GMT: Ahmadinejad Watch. And now another twist in the political drama over President Ahmadinejad's family and his trip to New York....

Government critics were sniping all week that the President had taken his relatives on the US trip, contrasting this with the economic issues and accusations of mismanagement at home. Ahmadinejad's office responded that this was nonsense, as the President had not taken any of his family on the flight.

Now Alef posts the photograph which appears to show Ahmadinejad's wife, his son Mehdi, and his daughter-in-law in the audience at the United Nations:

1445 GMT: The House Arrests. Opposition media note that five weeks have passed with no word of leading politician Mir Hossein Mousavi and his wife, activist Zahra Rahnavard, who have been under strict house arrest since mid-February.

Amnesty International have put out an "Urgent Action" request: "Call on the Iranian authorities to release Mir Hossein Mousavi, Mehdi Karroubi and Zahra Rahnavard without delay as they are being arbitrarily deprived of their liberty; call on the authorities to ensure in the meantime that they are granted immediate and regular access to their family, a lawyer of their choice and all necessary medical care; urge the authorities to remove unlawful restrictions on freedoms of expression, association and assembly."

1435 GMT: Political Prisoner Watch (At the Movies Edition). Weeks after the arrest of six filmmakers on the pretext they worked for BBC Persian, the International Campaign for Human Rights in Iran presents a September 2009 document which sets out the foundations for the regime's campaign against those in movies who were pursuing "underground cinema" and raising "political-security" concerns.

The memorandum, from State broadcaster IRIB, "Film Festivals: The Soft War and Underground Iranian Films", says independent filmmakers are "problematic" directors with "[prior] political-security files" who "in some cases have provided a dark image of the country".

The report accuses independent Iranian filmmakers of "profit-seeking under the cover of culture" and alleges that, because they lack the "ability to communicate with their fellow citizens, they are targeted and in order to compensate for their weaknesses and interests they associate with the politics of cultural imperialism". They present "a dark and disorganized picture of the economic and social conditions of Iran" and "a dark image of the Islamic Revolution".

1355 GMT: Environment Watch. Minister of Energy Majid Namjoo has said that Iran has reached an agreement with countries to the north to transfer water from the Araz River to Lake Urmia, which has been rapidly drying and turning to salt.

Up to half of the lake, located between East and West Azerbaijan in northwestern Iran, has been lost in recent years. In August, there were widespread protests over the situation, with demonstrators accosted and detained by security forces. Subsequently, the Iranian government approved $900 million to transfer water from rivers in Kurdistan to Lake Urmia.

1345 GMT: Political Prisoner Watch. Bashir Ehsani, a member of the Baha'i sect, has been sentenced to five years in prison for "assembly and conspiracy to disturb national security".

1205 GMT: Corruption Watch. Etemaad reports that MP Elias Naderan has been convicted of libelling 1st Vice President Mohammad Reza Rahimi.

Naderan is a persistent critic of corruption within the Iranian system and government. Rahimi has been under suspicion, to the point of a prosecutor's file handed to the courts, of involvement in a major insurance fraud.

1105 GMT: Nuclear Front. Washington has blunted --- at least in public --- President Ahmadinejad's initiative for talks on Iran's nuclear programme.

Ahmadinejad, in interviews with US newspapers and broadcasters while he was in New York for his United Nations speech, said Iran would suspend production of enriched uranium if the US provided the fuel necessary for the Tehran Research Reactor and other civilian projects. However, State Department spokeswoman Victoria Nuland said, "Ahmadinejad makes a lot of empty promises. He knows exactly what has to happen. If Iran has a serious proposal to put forward, it has to put it forward to the IAEA (International Atomic Energy Agency)."

Nuland said the IAEA and US "can study [a proposal] and then we can respond, but from our perspective at the moment, this looks like a diversion from the real issue."

1005 GMT: A Show for Palestine. Today's big set-piece in Tehran is the International Conference supporting the Palestinian intifida, opened with a speech by the Supreme Leader.

Ayatollah Khamenei's speech, helpfully summarised on Twitter by his office, offers the standard rhetoric:

Zionist regime is used as a base for arrogant powers. Zionism is great moral, political and economic danger for humanity. Recent Islamic Awakening got its important part of its spirit and epic [significance] from Palestine. Today, Palestine is much more important than before; Palestinians are right to expect more from Muslims....One of the messages of our revolution in 1979 was liberation of Palestine.... Islamic Republic of Iran is still inspired for defending Palestine.

There was, however, a distinctive touch in the Supreme Leader's reference to media and culture: "criticis[ing[ film industry for not picturing sufferings of Palestinians". And, politically, the point to note was Ayatollah Khamenei's jab at the West Bank-based leadership under Mahmoud Abbas of the Palestinian movement, "Palestine Liberation Organisation deviated from its original ideology. Turning against resistance harmed Palestine and PLO, and is still damaging them."

Specifically, Khamenei denounced the call by Abbas and the Palestinian Authority at the United Nations for Palestinian statehood: "Two states solution that now is labelled as 'Palestinian bid for full membership at the UN' is violation of Palestinian rights. Palestinian UN membership bid is what Zionists want: accepting a Zionist regime in a Palestinian land. Any future plan must be based on this principle that 'All of Palestine for all of the Palestinians'."

And, without mentioning the "nuclear" or "terrorism" buzzwords, the Supreme Leader put out this pointed message: "Iran's missiles or resistance movements are not a threat to Israel, people's determination in Islamic countries is a great threat to them. Of course if any threat is posed by our enemy, those missiles will do their job."

0705 GMT: Ahmadinejad Watch. Mohammad Ali Najafi of the Tehra] City Council has renewed a pressure point on Mahmoud Ahmadinejad, from his time as Mayor of Tehran from 2003 to 2005. Najafi claimed that a report, citing Ahmadinejad's spending of 320 billion tomans ($280 million) without proper documents, has been blocked.

0700 GMT: Energy Watch. Mixed news on the energy front on Friday --- there was an explosion on the Tehran-Tabriz gas pipeline during construction work, but Mehr reported that Iran resumed gas supply to Turkey after an eight-day break.

The Turkish company Botas requested a suspension to inspect the pipeline and conduct necessary repairs. Three explosions on the Iranian-Turkish pipeline disrupted supplies this summer.

0630 GMT: Straight into the $2.6 billion bank fraud scandal that is occupying Iran --- politicians, officials, and his own staff are still looking for the former head of Bank Melli, Mahmoud Reza Khavari, who reportedly resigned this week but has not been seen since the reported departure.

Khavari was supposed to be on a British Airways flight that landed in Tehran on Friday afternoon, but Bank Melli personnel waited in vain for him. Now the Canadian press has latched onto the story, first put out by the dismissed head of Bank Saderat, that Khavari is taking refuge in Toronto --- it even posts a picture of this house owned by Khavari:

Ayande notes the Canadian coverage and the $3 million valuation of the house to poke at Khavari's service to the "cleanest Government" in Iranian history.

But the embezzlement scandal is far from the only source of economic turmoil. Amidst claims of falling oil production, three leading oil and energy experts warned of the problems in the industry at a Tehran seminar. Taking aim at the mismanagement of the Ahmadinejad administration, the trio --- which included Gholam Hossein Nozari, a former Minister of Oil under Ahmadinejad, and Nejad Hossenian, a former Deputy Minister --- highlighted the declining production and disappearance of foreign investment.