Turkish prosecutors seek to freeze former minister Kaya’s assets — Balkan Insight

In Türkiye, the Istanbul prosecutor’s office has asked institutions to freeze all assets of former Family and Social Policies Minister Fatma Betül Sayan Kaya and her husband, İlyas Kaya. This took place as part of an investigation into investment fund transactions and possible violations in the capital market.

As Balkan Insight reports, the investigation is being conducted by the Istanbul prosecutor’s office unit for terrorist financing and money laundering. According to the outlet, 51 people have been remanded in custody in the case.

Liquidation of investment funds

Earlier, Turkish authorities ordered the liquidation of 130 funds managed by seven portfolio management companies. The reason was liquidity problems that contributed to significant market losses.

Reuters estimates the assets of these funds at approximately €18.8 billion and the number of investors at around 353,000. Turkish television channel CNBC-e cites different figures: about €17.4 billion and more than 514,000 investors.

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The liquidation of the funds does not mean the confiscation of investors’ money. Banks must ensure that funds are returned to investors: Is Bank will handle the liquidation of Tera Portfoy funds, while state-owned Ziraat Bank will handle the funds of the other six management companies.

Claims regarding share transactions

Opposition politicians claim that in April the couple invested approximately €2.9 million in shares of shipbuilding company Ozata Denizcilik and later sold them for approximately €39.5 million. Turkish authorities have not publicly disclosed these amounts.

Media outlets also reported that the Kayas transferred approximately €39.5 million to an account designated by the Ministry of Treasury and Finance. There is no public confirmation of this payment. After claims about the share transactions emerged, Fatma Betül Sayan Kaya left her post as deputy chair of President Recep Tayyip Erdoğan’s ruling Justice and Development Party.

After a government meeting, Erdoğan said that the authorities would act in response to violations in the markets and would not ignore violations of citizens’ rights.