The Mostazafan Foundation of Islamic Revolution () formerly Bonyad-e Mostazafan va Janbazan (Foundation of the Oppressed and Disabled or "MFJ") is a charitable bonyad, or foundation, in the Islamic Republic of Iran, the second-largest commercial enterprise in Iran behind the state-owned National Iranian Oil Company and biggest holding company in the Middle East. The foundation used to be directly run by Khomeini.
It was founded in 1979 as a successor to the Pahlavi Foundation. As an economic, cultural, and social welfare institution, the foundation controls manufacturing and industrial companies, whose profits are used—according to the foundation—to promote "the living standards of the disabled and poor individuals " of Iran and to "develop general public awareness with regards to history, books, museums, and cinema."
The Mostazafan Foundation is associated with the Islamic Revolutionary Guard Corps where some of its head officials have come from.
History
Pahlavi Foundation
Mohammad Reza Shah Pahlavi established the Pahlavi Foundation as a tax-exempt charity in 1958. This foundation held the assets of Mohammad Reza Shah, his predecessor, and many of his family, who later served on the corporate board and received commissions. The Pahlavi Foundation's wealth was estimated at $3 billion at its height. The Pahlavi Foundation was dogged by accusations of corruption.
The Pahlavi Foundation was said to have owned in Iran four leading hotels: the Hilton, the Vanak, the Evin and the Darband. The foundation gained international attention for purchasing the DePinna building on Fifth Avenue, New York, valued in 1975 at $14.5 million. Such investment in a foreign market by the Pahlavi Foundation gained media attention because in order to do such foreign investment the foundation had to register as an American charitable foundation with the declared aim of using the rental to pay for Iranian students studying in the United States.
The advantage of such charitable status was that the US authorities could not investigate the books of the Pahlavi Foundation in Iran.
Mostazafan Foundation
Following the Islamic Revolution, the Pahlavi Foundation was renamed the Bonyad-e Mostazafan (Foundation of the Oppressed), and its economic assets increased by more than double after the property of fifty millionaires was confiscated and added to the endowment.
A decade after the Revolution, the foundation's assets totaled more than $20 billion, and included "some 140 factories, 470 agrobusinesses, 100 construction firms, 64 mines, and 250 commercial companies." By 1994, the foundation conducted six trillion rials' worth of business transactions, compared with 5.5 trillion rials collected by the government in taxes. By 1996 the foundation began taking government funds to cover welfare disbursements.
Because of the Iran–Iraq War, the foundation was given the responsibility to supervise and aid veterans wounded in the war and the name Janbazan (disabled) added to it. Sometime before December 2005 the foundation changed its name back to Bonyad Mostazafan as the "Martyrs and War Veterans Foundation" took over war veterans affairs.
Important Revolutionary Guards who have headed the foundation include Mohsen Rafighdoost, who served as Minister of the Revolutionary Guards from 1982 to 1989 before heading the foundation until 1999; and Mohammad Forouzandeh, the chief of staff of the Revolutionary Guard in the late 1980s and later Defense Minister, who was head of the foundation from 1999 to 2014.
The United States imposed sanctions and blacklisted the Bonyad Mostazafan, an organization controlled by Khamenei. The sanctions froze U.S. assets and bared Americans from doing business with them. The foundation controls hundreds of properties confiscated since the 1979 revolution.
Status
Legally, the Mostazafan Foundation, is neither a public entity, nor a private one. It is classified as a nonprofit organization, in which the government cannot interfere in its affairs. The foundation only answers to the Supreme Leader.