Turkey Freezes Former Minister’s Assets in Market Manipulation Probe

Fatma Betul Sayan Kaya. Photo: Sayan Kaya/Facebook. The Istanbul Chief Public Prosecutor’s Office said on Tuesday that it had asked Turkish institutions to freeze all assets belonging to former Family and Social Policies Minister Fatma Betul Sayan Kaya and her husband, Ilyas Kaya, as part of an investment fund investigation. “As part of the fund investigation conducted by the Istanbul Chief Public Prosecutor’s Office’s Terrorism Financing and Money Laundering Crimes Investigation Bureau, relevant institutions have been instructed regarding the freezing of all assets belonging to Ilyas Kaya and his wife, Fatma Betul Sayan Kaya,” it said. The investigation into dubious capital market transactions has resulted in 51 people being remanded in custody. Turkish authorities previously ordered the liquidation of 130 funds managed by seven portfolio management companies after liquidity problems contributed to sharp market losses. According to Reuters, the funds’ assets are worth around 18.8 billion euros, involving about 353,000 investors. Turkish television channel CNBC-e estimates the total at about 17.4 billion euros and the number of investors at more than 514,000. Kaya, Turkey’s family and social policies minister from 2016 to 2018, resigned as a deputy chair of President Recep Tayyip Erdogan’s ruling Justice and Development Party, AKP, after allegations emerged about share transactions by her and her husband. Following a cabinet meeting, Erdogan said the government would act against wrongdoing in the markets. “We neither violate people’s rights nor turn a blind eye when the rights of our citizens are violated,” he said on Tuesday. Liquidation of funds does not mean that the investors’ money has been confiscated. Instead, banks are being tasked to deliver citizens’ money in these funds. Is Bank has been appointed to handle the liquidation of funds managed by Tera Portfoy, while state-owned Ziraat Bank will oversee funds belonging to the six other managers. Opposition politicians allege that the couple invested around 2.9 million euros in shares of shipbuilder Ozata Denizcilik in April and later sold the shares for about 39.5 million euros. The figures have not been published by the authorities. Media reported on Monday that the couple subsequently transferred around 39.5 million euros to an account designated by the Treasury and Finance Ministry. The reported payment has also not been publicly confirmed. Kaya comes from a family with extensive experience of public office. Her brother, Omer Fatih Sayan, a former telecommunications regulator chief and deputy transport minister, was appointed to the Energy Market Regulatory Board in July. Her sister, Ayse Hilal Sayan Koytak, previously ambassador to Kuwait and Bahrain, was appointed ambassador to Finland in September. Another sister, Nazmiye Sumeyye Sayan, previously served on Istanbul’s municipal council.