kheirollah Khademi and Corruption in Bitumen Distribution

(the fourth dossier)

kheirollah Khademi’s continued role as CEO of the Iran Construction and Development of Transportation Infrastructure Company (CDTIC) and Deputy Minister of Roads and Urban Development, despite political changes in Iran, underscores his importance in these areas. His participation on various boards further highlights his broad influence on Iran’s transportation and urban development landscape.

In one instance, former Minister of Roads and Urban Development Mohammad Eslami announced on September 12, 2018, that Ali Khamenei had approved €300 million from the National Development Fund for the Chabahar-Zahedan-Sarakhs railway. However, over a decade later, the project’s status remains unclear.

In January 2022, Iranian state media reported on corruption in bitumen distribution. A member of parliament revealed extensive corruption and rent-seeking in the distribution of free bitumen. Stating that “some government officials colluded with bitumen contractors and falsified documents to obtain free bitumen.” Kamal Alipour referenced reports from various Iranian security agencies, alleging that some officials conspired with contractors to receive free bitumen, leading to incomplete construction projects, excessive costs for the government, and widespread misappropriation of public resources.

He added that in 2013, only 500,000 tons of free bitumen were distributed, but this practice became more serious starting in 2015, with increasing amounts of free bitumen distributed each year.

Rostam Qasemi’s Letter

Kheirollah Khademi denied these allegations and called for the exact locations of the corruption to be identified. In April 2022, Iranian state media published a letter from Rostam Qasemi, the then Minister of Roads and Urban Development. In the letter he was warning Khademi, four other officials, and provincial managers about systemic corruption in the national transportation system and requesting explanations.

Qasemi stated that “some bitumen companies are swapping received high-quality domestic vacuum bitumen with inferior foreign products, which harms road quality.”

In November 2021, the sharp rise in bitumen prices again drew attention to corruption in this sector. In response to questions about bitumen distribution corruption, Khademi claimed:

“I am not aware; the construction company is merely a consumer of bitumen. I do not say that corruption has occurred.”

In April 2023, a media outlet referred to Khademi as a “man for all governments” or the “sultan of road construction,” noting his strong lobbying influence with members of parliament. The report also criticized Khademi’s performance. Stating that the annual construction of about 200 kilometers of railway in Iran resembles “tortoise speed.”

Further details on these findings can be found here: