TEHRAN, Iran - Iran's parliament impeached the country's interior minister on Tuesday after he admitted faking a degree from Oxford University, a vote touted by critics as a defeat for President Mahmoud Ahmadinejad.

The dismissal of Ali Kordan was the first high-profile confrontation between the new parliament and Ahmadinejad.

The interior minister in Iran is a powerful position in charge of holding elections and local administrations throughout the country.

During Kordan's confirmation debate, numerous legislator argued he was unqualified for the post, some claiming that his Oxford degree was a fake. Kordan was approved Aug. 5 by a relatively slim margin of around 160 of the 269 lawmakers present, a reflection of the concerns.

Kordan initially argued that his degree was real. The Interior Ministry put out a certificate, with an Oxford seal and dated June 2000, meant to prove its authenticity. It was riddled with spelling and grammar mistakes.

Oxford denied it had ever awarded an honorary doctorate of law to the minister, who then admitted the degree was fake.

Ahmadinejad defended Kordan, dismissing degrees in general as "torn paper" not necessary for serving the people.

The president was already under attack from both reformers and conservatives, who brought him to power but now complain he spends too much time on anti-U.S. rhetoric rather than managing the country.

Middle-class Iranians, who have seen their standard of living fall, often speak scornfully of his economic naivete.

In July, he predicted oil prices would never fall below US$100 per barrel, but on Tuesday they hovered near $63 a barrel. Tehran's stock index last week plunged about 12 per cent to its lowest close in years. And inflation is estimated at 27 per cent or more.

Ahmadinejad disclosed last month that he suffers from exhaustion.

Of the 247 legislators who attended Tuesday's open session, 188 voted against Kordan -- including many conservatives. Forty-five parliament members voted in favour of Kordan and 14 abstained.

On Sunday, Ahmadinejad called the impeachment proceedings illegal. And in an apparent protest, the president refused to attend Tuesday's hearing.

On Tuesday, the parliament speaker, Ali Larijani, a conservative rival to the president, rejected Ahmadinejad's assertion. "It is very clear that the impeachment is legal," Larijani told the chamber.

During the hearing, Kordan defended himself, saying his impeachment was a conspiracy by foreign enemies, including the U.S. and Israel.

He told legislators that since he became a minister, "there's been heavy media propaganda against me abroad."

But parliament members rejected his defence, saying it was irrelevant to the issue over his fake degree.

Conservative legislator Bijan Nobaveh said the no-confidence vote should be seen as defending the parliament's prestige and the country's credibility.

Legislators also were offended last week after a government official tried to pay legislators not to vote for Kordan's impeachment. The attempt promoted one conservative legislator to slap the official, Mohammad Abbasi, in the face.

The scandal forced Ahmadinejad to dismiss Abbasi, but some legislators have suggested that the payment would not have been attempted without orders from higher up.