Full Breakdown
AK Party Deputy Chair Resigns Amid Share-Trading Allegations During Turkey’s Fund Crisis
By Drooid · · How we work
Core Event: Resignation of Fatma Betul Sayan Kaya
On September 27, Fatma Betul Sayan Kaya, the AK Party deputy chair for social policies, asked President Recep Tayyip Erdogan to relieve her of all party duties while insider-trading allegations are investigated.
Background & Context: Turkey’s Widening Fund Crisis
Since early September, Turkey’s investment-fund sector has faced a liquidity crunch after several funds could not meet withdrawal requests from roughly half a million investors. The crisis spilled onto Borsa Istanbul, prompting regulators and the central bank to intervene. The turmoil was linked to suspected price manipulation in thinly traded stocks, notably shares of shipbuilder Ozata Denizcilik.
Data & Statistics
- Alleged investments: Opposition New Party spokesman Zeynel Emre said Kaya and her husband Ilyas Kaya invested a combined 163 million lira (? $3.3 million) in April, primarily in Ozata Denizcilik shares.
- Bloomberg’s breakdown: Kaya bought roughly 63.4 million lira of Ozata Denizcilik in April and sold them for about 1.34 billion lira; her husband invested about 99.7 million lira and later withdrew roughly 826 million lira.
- Share price movement: Ozata Denizcilik shares rose from around 220 lira at the start of April to 4,980 lira on September 15, just before the market sell-off on September 16.
- Regulatory action: The Capital Markets Board (SPK) filed criminal complaints against 11 individuals linked to Ozata Denizcilik transactions and imposed two-year trading bans on those persons and on the firms Tera Yatirim Holding, Tera Portföy Yönetimi, and Tera Yatirim Menkul Degerler.
- Asset freezes: Justice Minister Akin Gürlek reported that assets of 46 legal entities, 18 funds and 42 individuals were frozen after reviewing activity between July 1 and September 16.
Official Statements & Responses
- Erdogan: President Erdogan, also AK Party chairman, said the market turmoil is confined to a limited segment and does not threaten Turkey’s overall financial system.
- Justice Ministry: Minister Akin Gürlek confirmed the asset freezes and said investigations into fund-related transactions are ongoing.
- SPK: The regulator noted its enforcement actions and clarified that neither Kaya nor her husband were named in the criminal complaints.
Criticism & Opposition
Zeynel Emre alleged that the timing of the Kayas’ purchases and sales suggested advance knowledge of the market collapse and questioned whether the profits were obtained illicitly. He also claimed that proceeds were moved through multiple accounts, including one outside Turkey.
Conflicting Reports & Gaps
- Investment totals: Some reports present the Kayas’ investment as a single combined figure of 163 million lira, while Bloomberg provides separate figures (63.4 million lira for Kaya, 99.7 million lira for her husband). Both agree on a profit of roughly 2 billion lira but differ on the breakdown.
- Offshore transfers: The allegation of offshore movement remains unverified and is attributed solely to the opposition spokesperson.
What’s Next
Prosecutors have launched a broader investigation into capital-market transactions related to the fund crisis, with senior executives at Tera and Pusula Portföy Yönetimi detained. Further legal actions may follow as authorities continue to examine fund activity and related asset movements.