OTTAWA — Companies controlled by the son of a former Iranian vice-president received more than $2 million in Canadian government contracts while national security agencies investigated his alleged involvement in Iran’s military technology and sanctions-evasion programs.The Edmonton businessman, known professionally as Sal Ghafouri, is Mohammad Reza Ghafouri Fard, according to documents obtained by Global News. His father, Hassan Ghafouri Fard, served as vice-president of Iran under former president Akbar Hashemi Rafsanjani.A recently declassified Canadian Security Intelligence Service report alleges Ghafouri was involved in developing Iranian military technology before immigrating to Canada in 2013.The report says he worked for the Iranian company Rabi Kosar on missile defence, electronic warfare and direction-finding systems eventually supplied to Iran’s military and the Islamic Revolutionary Guard Corps.CSIS also alleged Ghafouri participated in a covert procurement network that used a company in Southeast Asia to obtain components Iran could not acquire because of international sanctions.“Ghafouri Fard clearly indicated that he did not care that these activities were prohibited,” CSIS wrote in its January 2023 security report, according to Global..Ghafouri strongly denies posing a security threat and has not been charged with a criminal offence.His lawyer, Bjorna Shkurti, said her client has lived in Canada for more than a decade and undergone multiple security screenings as both a temporary and permanent resident.“He strongly disputes the allegations made against him and intends to pursue all available legal avenues until the matter is fully resolved,” she said.Ghafouri founded Melanite Group and Radian Group Ltd. after moving to Alberta. Public records reviewed by Globalshowed the companies received contracts from the RCMP, Department of National Defence, Correctional Service Canada and other government bodies.Two military contracts were reportedly worth more than $1.5 million.The RCMP hired one of the companies to procure a borescope imaging device, while the military issued contracts for snow-vehicle parts, vehicle lifts and road vehicles.Correctional Service Canada awarded Melanite a $100,000 contract in 2019, while Innovation, Science and Economic Development Canada awarded it a $380,000 contract in 2021.The company continued receiving public money after CSIS completed its report and shared it with immigration authorities in 2023.In 2024, the federal government gave Melanite a $15,000 technology grant. Six months later, the Canadian Armed Forces awarded the company a $50,000 contract to provide vehicles to Canadian Forces Base Borden in Ontario.Ghafouri was also included in a Canadian trade mission to Latin America and attended Alberta government consultations where participants were invited to suggest legislation.The contracts continued despite Ghafouri being flagged by immigration investigators over national security concerns as early as 2017.CSIS alleged Ghafouri returned to Iran in 2015 and met twice with members of the country’s Ministry of Intelligence and Security.According to the intelligence report, Iranian officials questioned him about his work in Canada, contacts with Canadian or American intelligence services and travel to the United States.The report alleges they advised him not to enter the U.S. because his past work would make him of interest to the FBI.Immigration officials informed Ghafouri in May that proceedings had been launched to deny him Canadian citizenship on the grounds that he posed a threat to national security.The Canada Border Services Agency had previously initiated deportation proceedings but withdrew the case in November 2025 because it could not use the required evidence, government records said.Ghafouri is challenging the handling of his citizenship application in Federal Court and seeking between $5,000 and $25,000, alleging lengthy delays have caused hardship to his family.CSIS and Immigration, Refugees and Citizenship Canada declined to comment. Federal agencies that awarded contracts to Ghafouri’s companies did not respond to the outlet before publication.c