Liberal MPs have halted debate on a Conservative push to examine how companies founded by an Iranian-born businessman facing serious national security allegations continued receiving federal contracts and funding.
Conservative MP Dan Mazier made a motion before the House of Commons government operations committee seeking a meeting on the case of Mohammad Reza Ghafouri Fard, who does business as “Sal Ghafouri.”
A declassified Canadian Security Intelligence Service report alleged Ghafouri participated in procurement activities benefiting Iran’s military and the Islamic Revolutionary Guard Corps before immigrating to Canada.
“CSIS shared that report with immigration officials,” Mazier told the committee.
“Despite this, his companies kept receiving federal money, including from National Defence and Innovation, Science and Economic Development Canada, after already winning work from the RCMP.”
Mazier questioned how one part of the government could raise national security concerns while other departments continued awarding contracts to Ghafouri’s companies.
“If one part of the government is building a national security case against the supplier while another one keeps signing contracts with them, how is this allowed to happen?” he asked.
“I didn’t hear an answer. I didn’t hear a straight answer. I didn’t even hear any concern.
“That is why we owe Canadians to get some answers on this,” Mazier added.
Liberal MP Chad Collins Danko responded that the committee faced an “extremely tight timeline” to complete its current study by an October 22 deadline and had other outstanding committee business.
“That leaves us in no position but to move to adjourn debate on this motion,” Danko said.
The motion to adjourn debate passed 5–4.
The vote did not formally defeat Mazier’s underlying motion, but ended debate at that meeting and prevented the committee from immediately proceeding with the proposed investigation.
Ghafouri, 45, is the son of Hassan Ghafouri Fard, a former Iranian vice-president and member of parliament.
According to records reviewed by Global News, two Alberta companies founded by Ghafouri — Melanite Group and Radian Group Ltd. — received more than $2 million in federal and provincial contracts, including work from the RCMP and Department of National Defence.
Two military contracts alone were reportedly worth more than $1.5 million.
Ghafouri had been flagged by immigration investigators over national security concerns as early as 2017.
CSIS completed a security screening report on Jan. 13, 2023, alleging Ghafouri had been involved in Iranian military technology projects and a “covert procurement structure” used to obtain components unavailable to Iran because of sanctions.
The agency alleged Ghafouri “admitted to active participation in procurement activities that benefited the Iranian military, including the IRGC.”
The report was provided to immigration officials, but Ghafouri’s company continued receiving federal money afterward.
In 2024, Melanite received a $15,000 federal grant and another Canadian Armed Forces contract. Global News reported its most recent federal contract was worth roughly $50,000 and involved supplying vehicles to CFB Borden.
It remains unclear whether procurement officials at National Defence, the RCMP or other departments were aware of the CSIS findings when contracts were awarded.
The RCMP said its 2019 contract with Melanite had “no security requirements” and that the required integrity verification was completed. It said it has not conducted further procurement with Melanite since.
The Canada Border Services Agency also investigated Ghafouri and decided to pursue deportation proceedings over his previous employment activities in Iran, but withdrew the case in November 2025 because of an “inability to use the required evidence.”
Four Iranian-Canadian organizations have called on Prime Minister Mark Carney to launch an independent investigation into whether national security information was properly shared and contracting safeguards were followed. The Abraham Global Peace Initiative has separately called for an investigation.
Ghafouri strongly disputes the allegations.
His lawyer, Bjorna Shkurti, said he has lived in Canada for more than a decade, undergone multiple security screenings and intends to pursue “all available legal avenues” to contest the allegations.
Ghafouri has also argued that the government’s own dealings with him — including awarding contracts and involving him in trade missions — undermine allegations that he poses a security threat.
In May 2026, Immigration, Refugees and Citizenship Canada informed Ghafouri that it had begun proceedings to refuse him citizenship on national security grounds.
The allegations contained in the CSIS report have not been tested in court, and Ghafouri denies wrongdoing.
My logic is simple: we can't charge you under the charter for being associated with bad people (including terrorists), but that doesn't mean we have to give you a cent from the public purse if you are. We need to screen better and monitor the financial sector for terror funding networks, because they're far craftier than most care to acknowledge.