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EghtesadOnline: Iranian MPs have voted to increase financial transparency of non-governmental public entities by mandating them to publish their financial reports.

The relevant bill received overwhelming support in the Iranian Parliament on Wednesday.

As an addendum to Article 44 of the Constitution (privatization law), the new measure mandates the businesses to regularly report their financial statements and information on their dealings to the regulatory body of the Iranian capital market, Financial Tribune reported.

"Promoting transparency is one way to overcome the country's [unfavorable] economic situation ... Subsidiary companies of non-governmental public organizations have a primary role to play in fixing the current situation and increasing economic transparency," said Farid Mousavi, Tehran's representative in Majlis who introduced the bill.

Companies in Majlis's crosshairs include subsidiaries of municipalities, large-scale holdings such as Mostazafan Foundation of Islamic Revolution and Social Security Organization, Foundation of Martyrs and Veterans Affairs and Islamic Development Organization, among others.

In case of refusal to submit their financial reports, violators will be fined an 10% additional income tax and 5% increase in insurance premium, ISNA reported.

The bill also mandates the Economy Ministry to report the companies' annual reporting performance to the parliament.

"Most companies' general meetings convene in the third and fourth month of the year," Mousavi said. "This is an opportune time to introduce such a measure so that violators can be punished."

 

Iran MPs Iran Public Enterprises Financial Reports financial transparency non-governmental public entities