Sarafraz accused the government and banking system of systematic corruption that has led to vast income gaps among Iranians. He said most of this corruption exists in companies that enjoy the benefits of private firms but pretend to be government entities when they are paying taxes or report their financial status. These companies, he said, leave no room for competition by real private companies. Eighty percent of Iran’s economy is directly or indirectly controlled by the government or semi-official companies. A privatization drive began 15 years ago, but it mainly turned into setting up quasi-governmental firms controlled by powerful insiders who block competition and use public funds to stay afloat.
