As far as I could tell (living abroad myself and getting the news from the friends, family and the online media there) the government didn't censor the news of the disease, but went ahead with the election and didn't postpone it, taking a few measures, most half-baked, to prevent the spread of the disease.
I don't think they had the foggiest idea of how deep they were in trouble, considering the number of law makers that came down with the disease, most having contracted them during the campaigning.
The western media is just so blatantly trying to push opinion as news nowadays that it has become practically painful to read; and not just about Iran.