No restrictions on Iranian company's sale: council chairman
Azerbaijan, Baku, Nov. 12 / Trend T. Jafarov /
The controlling stake (51 percent) of the Iranian Telecommunications Company was sold to a cooperative this week. There are no restrictions on buying such companies for any organizations, Iranian Competition Council Chairman Jamshid Pazhuyan said.
"The roughly 51 percent of the Iranian Telecommunications Company have not been sold to the Iranian Revolutionary Guard. They have been sold to a cooperative related to the organization," he said.
There are no restrictions for organizations on buying cooperative companies," Council on Competition Chairman and Iranian Organization for Budget and Planning Scientific Council member Jamshid Pazhuyan told Trend today.
The cooperative company Etemad Mobin is a member of the Sepah. The company bought 51 percent of the Iranian Telecommunications Company for $7.8 billion Nov. 9.
Etemad Mobin participated together with Pishgamane Kavire Yazd in a tender announced to purchase shares of the telecommunications company.
However, the latter was prevented from participating in the tender by Iran's Privatization Organization.
After preventing Pishgamane Kavire Yazd from participating in the tender, a struggle ensued between the two Sepah organizations Etemad Mobin and Mehr Iqtisade Iraniyan.
Etemad Mobin's purchase of a 51-percent stake in the Iranian Telecommunications Company calls into question the country's privatization process. It also led to protests by some parties.
Pazhuyan said according to amendments to Article 44 of the Iranian Constitution, the state has the right to sell state-owned enterprises for privatization to the private sector and cooperative companies. From this point of view, there is no contradiction with the law.
The privatization process in Iran must improve, Pazhuyan said.
"I think the privatization process has some shortcomings. Taking into account the risks, the private sector is not willing to participate in the privatization process," he said.
Pazhuyan expressed hope that the government will take measures to support privatization.
"I hope that the risks will reduce. The privatization process will enter a more acceptable level with the help of the appropriate government policy," he said.
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