IRAN'S CENTRAL GOVERNOR MAY LEAVE OVER OBJECTION TO

S E C R E T SECTION 01 OF 02 DUBAI 003132

SIPDIS

NOFORN
SIPDIS

E.O. 12958: DECL: 5/24/2016
TAGS: IR PGOV PINR PINS PREL ECON EFIN
SUBJECT: IRAN'S CENTRAL GOVERNOR MAY LEAVE OVER OBJECTION TO
TRANSFERS OF GOVERNMENT FUNDS


CLASSIFIED BY: Jason L. Davis, Consul General, Dubai, UAE.
REASON: 1.4 (b),(d)




1. (S/NF) Summary: According to one source, the governor of the
Central Bank of Iran (CBI) may be removed for questioning
President Ahmadinejad's request to transfer Iranian government
money into private accounts inside and out of the country. The
source claims a personal friendship with the governor, but could
be repeating similar allegations reported in the press. End
summary.

Iran's Central Bank Governor on the Way Out?
--------------


2. (S/NF) Amir Tavakoli (please protect),a boardmember of
Alborz Insurance, one of Iran's four state-owned insurance
companies, recently told Conoff that CBI Governor, Ebrahim
Sheibani, may soon be ousted from his position and replaced by
First Vice President Parviz Davudi. Tavakoli -- in Dubai to pick
up a US visitor's visa -- claimed that Sheibani, a neighbor,
told him he may be fired because he recently questioned
Ahmadinejad's request to transfer public funds to regime
stalwarts' private accounts (presumably in a bid to protect
those funds from economic sanctions that the Iranian government
fears will be levied in case of no resolution to the nuclear
issue). Sheibani reportedly told Ahmadinejad that he would not
move the funds without direct approval from the supreme leader.
When Sheibani went to Supreme Leader Khamenei with the request
from Ahmadinejad, Khamenei allegedly stated that he knew nothing
about the transfers and would not okay them. Tavakoli believes
that the supreme leader was probably aware of the plan but
wanted plausible deniability if the scheme ever became public.

3.(U) Recent Western and Iranian press reports claim that
Sheibani has resigned. The Western press reports, citing an
unidentified website "considered closed to the Islamic
Revolutionary Guards Corps," claim that Sheibani is resigning as
a result of a disagreement with Ahmadinejad over an order to
withdraw money from public accounts overseas. The money,
reportedly close to 30 billion euros, was to be transferred to
the accounts of private individuals or "good, trusted Muslims."
Sheibani also allegedly opposed a "compromise" proposal by
Ahmadinejad to move the funds to banks in allied countries such
as Syria, Venezuela or Cuba. In contrast, the Iranian press
reports assert that Sheibani is resigning due to his opposition
to a recent Majles bill that would reduce bank profit rates.

4.(S/NF) Tavakoli said, without specifying the source, that the
government is transferring money from government accounts into
different accounts all over the world, including in Canada, the
US, and various Asian countries. (Note: In a possible repeat of
what could just be rumor, a separate Iranian businessman with
unclear access, told Conoff on May 23 that the government is
shifting a significant amount of its funds to accounts in
Canada. End note.) Tavakoli further claimed that funds are also
being hidden in "development projects" in Asia. Tavakoli, who
used to work at both the Ministry of Economic Affairs and
Finance and the Planning and Budget Office (PBO),recently asked
his former colleagues at the ministry about this. They denied
such allegations, telling him that they had received no budget
requests from the government for development projects in Asia
and had no plans to release any funds.

Comment
--------------

5.(S/NF) Although there is no confirmation yet that Sheibani is
resigning or being forced out -- and if so, for what reason -- a
change of CBI governor at this time of increasing economic
pressure on Iran may have a strong impact on Iran's financial
policy. Sheibani is considered a technocrat with strong
professional and financial credentials. According to Iranian
press reports, the Iranian president's nominee for CBI governor
has to be accepted by the general assembly of the Central Bank
and not necessarily the Majles. Additionally, academic
background and professional capabilities have always been a
priority in the selection of Iran's Central Bank governor. After
taking office, Ahmadinejad reportedly tried to get in his own
candidate as CBI governor but failed. He may again have
difficulty pushing through anyone seen as unqualified for the
job.

6.(S/NF) Tavakoli claims personal friendship with the CBI
governor; if true, this lends credibility to his statements.
However, current and former ConGenOffs have been surprised to
receive from Tavakoli numerous unsolicited emails from Iran in

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which he openly expresses his opposition to the current regime
and his support for regime change. Most contacts are much more
nervous about sending any kind of political statements via the
Internet, out of fear of government scrutiny, which raises some
questions about his credibility.

7.(SBU) Whether these allegations are true or not, such rumors
may add to fear in Iranian society of future sanctions. A recent
visa applicant told Conoff that there has been a recent surge in
prices on consumer goods, which he claimed was caused by people
hording goods in preparation for sanctions they believe will
come.



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DAVIS