Iran: Purge of Moderates Extends to Govenors and Bank

Adnkronos International:

After a purge of diplomats and directors of state-owned banks, the hardline government of Mahmoud Ahmadinejad is now weeding out regional governors who were appointed under Mohammed Khatami and are considered too moderate. The first to lose his job was the governor of Khorasan, whose regional capital Mashad is the second most important religious centre after Qum and hosts the sanctuary of Imam Reza. The new governor is Hassan Mortazavi, until now head of the prisons department at the justice ministry. Another five prison directors will replace other governors in coming days.

Commenting the latest shake-up, writer Emadeddin Baghi, founder of a political prisoners' rights group, said "it seems they want to turn every region into a mega-prison and hence are giving the task of governor to people with relevant experience."

Under a presidential decree last week the directors of the country's most important banks (Sepah, Melli, Mellat, Keshavarzi, Saderat e Tejarat) have also been removed.

Ahmadinejad had accused the directors of the banks, along with the Tehran Stock Exchange of "anti-Islamic and anti-social behaviour", arguing that "hanging some of the directors would be enough to resolve the economic crisis".

In the farewell cerermony to the outgoing bank directors, the new economy minister Davoud Danesh Jaafari, issued a warning to Iran's banking sector. "If the banks do not work to carry out the economic policies of the government, or worse still work against them, they will be closed down".

The appointment which has created the greatest furore in financial circles is that of Abdolhamid Ansari, a former commander of the Revolutionary Guard, who will head the Melli Bank, Iran's central bank. READ MORE

The foreign minister, Manouchehr Mottaki, confirmed that by the end of the Persian year - which concludes 20 March - forty ambassadors will be recalled to Iran and will not be redeployed in other overseas missions.

However while the parliament is generally supportive of the new leader, on Wednesday, Ahmadinejad was forced to withdraw his candidate for the key oil ministry, Sadeq Mahsouli, hours before it went to a parliamentary vote, because of his lack of expertise in the crucial energy sector.

This should inspire confidence that the west can work with Ahmadinejad.