Iranian MP: Gov't removes $5 billion from development fund illegally

Iran Materials 31 May 2012 12:13 (UTC +04:00)

Azerbaijan, Baku, May 31/Trend M. Moezzi

In a legally prohibited move, Iran's government has withdrawn $5 billion from the country's National Development Fund (NDF).

According to Moussa Al-reza Servati, a member of Iran's Majlis (parliament), the executive branch withdrew the funds in the past several days, the Iranian Labour News Agency (ILNA) reports.

The NDF's purpose is to provide the financing and credit needed by the private sector and non-governmental organisations to develop various areas of the economy, said Mr Servati who called the funds withdrawal against the law.

Mr Servati also expressed unhappiness with the removal of the NDF's head, Rahim Qorbani.

Based on Article 84 of the Fifth Five-year Socio Economic Development Plan (2011-2015), the National Development Fund was established to transform oil and gas revenues into productive investments for future generations. At least 20 per cent of the NDF's money should be allocated to promoting foreign investments.