2013 corruption scandal in Turkey

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The 2013 corruption scandal in Turkey or 17-25 December Corruption and Bribery Operation was a criminal investigation that involved several key people in the Turkish government. All of the 52 people detained on 17 December were connected in various ways with the ruling Justice and Development Party (AKP). Prosecutors accused 14 people – including Suleyman Aslan, the director of state-owned Halkbank, Iranian businessman Reza Zarrab, and several family members of cabinet ministers – of bribery, corruption, fraud, money laundering and gold smuggling. [1]

Contents

At the heart of the scandal was an alleged "gas for gold" scheme with Iran involving Aslan, who had US$4.5 million in cash stored in shoeboxes in his home, and Zarrab, who was involved in about US$9.6 billion of gold trading in 2012. Both men were arrested. [2] The scheme started after Turkish government officials found a loophole in the U.S. sanctions against Iran that allowed them to access Iranian oil and gas. Turkey exported some US$13 billion of gold to Iran directly, or through the UAE, between March 2012 and July 2013. In return, the Turks received Iranian natural gas and oil. The transactions were carried out through the Turkish state-owned bank, Halkbank. In January 2013, the Obama administration decided to close this loophole but instead of immediately charging Halkbank, the U.S. government allowed its gold trading activities to continue until July 2013, because Turkey was an important ally regarding the American-led intervention in the Syrian Civil War, and the U.S. had been working on a nuclear deal with Iran. [2]

Then-Prime Minister Erdoğan (now President of Turkey) was on a tour of Pakistan when the scandal broke, which analysts believe changed the response of the AKP, or influenced those with the tapes to leak them at a time when Erdoğan was visiting an ally (Pakistan). [3]

Police investigation and allegations

On 17 December 2013, the Financial Crime Unit of the Istanbul Security Directorate detained 47 people, including officials from TOKİ (Housing Development Administration of Turkey), the Ministry of Environment and Urban Planning, and the District Municipality of Fatih. [4] Barış Güler, Kaan Çağlayan and Oğuz Bayraktar, who are sons of the Turkish ministers, Muammer Güler (Minister of the Interior), Zafer Çağlayan (Minister of Economy), and Erdoğan Bayraktar (Minister of Environment and Urban Planning) were implicated, as well as Mustafa Demir, the mayor of the district municipality of Fatih; the real estate businessman Ali Ağaoğlu; Süleyman Aslan, the general manager of Halkbank and the Iranian businessman Reza Zarrab. [5] who was considered as the key suspect in the investigation, who was reportedly involved in a money laundering scheme particularly regarding his transfer of gold and money to Iran via Turkey's government-controlled Halkbank as part of a strategy to bypass United States-led sanctions on Iran. [1] Demir was detained on accusations of approving the construction license for a hotel near the route of the recently inaugurated Marmaray railway, despite warnings from Japanese engineers that the construction could put the tunnel at risk of collapsing. Demir was investigated for ordering the ministry report to be shelved in exchange for bribes. [6]

Moreover, Egemen Bağış, the Minister of European Union Affairs, is cited in newspaper articles as a potential suspect of bribery related to Reza Zarrab who has business affiliations with Babak Zanjani. [7] [8] [9] As part of corruption claims along with 3 other ministers, Bağış was the only one out of the four charged ministers who had not resigned on 25 December 2013. Prime Minister Erdoğan announced a major cabinet reshuffle, removing Bağış from his post as the Minister for European Union through his publicly unannounced official resignation. [10]

The police confiscated some US$17.5 million as money used in bribery during the investigation; US$4.5 million was found at Süleyman Aslan's residence and US$750,000 at Barış Güler's. [11] Prosecutors accused 14 people including Barış Güler, Kaan Çağlayan, Süleyman Aslan and Reza Zarrab of bribery, corruption, fraud, money laundering and smuggling gold. On 21 December, the court ordered the arrest of these 14 people. [12]

In total, 91 people were detained in the investigation; 26 of them were arrested by the court. [13]

Second wave

Several newspapers reported that a new investigation was expected on 26 December, possibly involving then-Prime Minister (now President of Turkey) Erdoğan's sons, Bilal Erdoğan and Burak, [14] as well as certain Al-Qaeda affiliates from Saudi Arabia such as Sheikh Yaseen Al Qadi and Osama Khoutub. [15] The police officers in Istanbul Security Directorate, newly appointed by the government just a few days previously, refused to carry out their orders, and the deputy director of Public Prosecutions did not approve this new operation. The man behind this second investigation, Prosecutor Muammer Akkaş, was dismissed on the same day. [16] Akkaş said he was prevented from performing his duty. [17]

A second wave of arrests was planned, and a list was leaked to the press. [18]

At midnight on 7 January, a government decree was published removing 350 police officers from their positions, including the chiefs of the units dealing with financial crimes, smuggling and organised crime. [19] Fethullah Gülen described the decree as a purge of civil servants, while then-Prime Minister Erdoğan (now President of Turkey) described the corruption investigation as a "judicial coup" by those jealous of his success, backed by foreigners, namely a "dirty plot" of the Gülen movement. [20]

Government reaction

Since the beginning of the investigation, the Justice and Development Party (AKP) government has started a purge in the police force; sacking dozens of police chiefs, most notably Hüseyin Çapkın, the Chief of Police in Istanbul. [21] The Ministry of the Interior and the Ministry of Justice also changed their regulations, forcing security forces to inform their seniors of their actions at all times. [22] This received criticism from the Union of Turkish Bar Associations, who are taking the case to the Turkish Council of State. [23] The Turkish Council of State overturned the change of these regulations on 27 December, much to the disappointment of Prime Minister Erdoğan. [24]

Various opposition sources accused the government of trying to influence the judiciary system and covering up the corruption. Among them was the Nationalist Movement Party MP Oktay Vural. [25] A heated controversy erupted after the release on YouTube of audio recordings in which Erdoğan was reportedly heard telling his son, Bilal, to urgently get rid of tens of millions of dollars. Erdoğan has claimed the recordings were a montage but the experts begged to differ. [1]

In late December, Hurriyet and Yeni Safak papers published comments by Erdoğan stating he believes he is the ultimate target of a corruption and bribery probe of his allies. The Turkish Prime Minister told journalists that anyone attempting to enmesh him in the scandal would be "left empty handed." Erdoğan reshuffled his Cabinet on 25 Dec, replacing 10 ministers hours after three ministers, whose sons were detained in relation to the probe, resigned. One of those ministers called on Erdoğan to also step down. The ministers’ sons were questioned over the scandal focusing on alleged illicit money transfers to Iran and bribery for construction projects. Two of them were later arrested on bribery charges. [26]

According to Hüseyin Çelik, who is serving as government spokesman, the four ministers who are involved in the investigation offered their resignation to the Prime Minister Erdoğan on 22 December. [27]

Erdoğan blamed the investigation on an international conspiracy and vowed revenge on the Islamic community of the preacher Fethullah Gülen. [28] There had been an antagonism between Erdoğan and Gülen for some time: Hakan Şükür, who is often regarded as a disciple of Gülen, had resigned his post in Justice and Development Party on 16 December. [29] Government officials accused Gülen and his followers of treason and started referring to them as "terrorists." [1]

Erdoğan defended Halkbank chief executive Süleyman Aslan, describing him as "honest person". Aslan was charged with taking bribes by the prosecutors while the police are said to reportedly have found US$4.5 million in cash stored in shoe boxes in Aslan's home. [30] After Aslan was arrested the bank's stock went down 32% for the year. [31] Erdoğan also threatened Francis Ricciardone, the U.S. ambassador to Turkey, with expulsion. [32]

Erdoğan left the country for an official visit to Pakistan on 23 December, while the scandal was dominating the headlines. [3]

Muhammed Mısır, a bureaucrat in the Ministry of Health, resigned after bribery allegations on 24 December. [33]

Muammer Güler (Minister of the Interior) and Zafer Çağlayan (Minister of Economy), both of whose sons were arrested in the anti-corruption operation, resigned together on the morning of 25 December. [34] That same afternoon, Erdoğan Bayraktar (Minister of Environment and Urban Planning) resigned both as minister and as a member of parliament. Bayraktar said that he did not take kindly to having been forced into resignation, and that Prime Minister Recep Tayyip Erdoğan should resign as well, claiming that he had done everything with the Prime Minister's approval. [35] [36]

İdris Naim Şahin, former Minister of the Interior, has resigned from Justice and Development Party on 25 December. He said the government's crackdown on the police organization and the judiciary system could not be explained with reason or the notions of law and justice. [37]

450 policemen in the Financial Crimes department were forbidden to enter the Istanbul Security Department HQ. [38]

Erdal Kalkan, a member of parliament in the constituency of Izmir from the ruling AKP, resigned from his party on 26 December because of the ongoing scandal. [39] Haluk Özdalga, Member of Parliament in the constituency of Ankara, resigned from AKP for the same reason. [40] Ertuğrul Günay, another MP in the constituency of Izmir and former Minister of Culture, was the third one to resign from AKP. [41] These three ex-members of AKP were each separately had been on investigation by AKP's internal discipline committee with the accusation of opposing AKP's own regulations. They all resigned before the committee reached a verdict.

On 31 December, Burdur deputy Hasan Hami Yıldırım resigned from the AKP, reducing the number of AKP parliamentarians to 320. Yıldırım accused the government of obstructing the investigation into the scandal. [42] He also criticized the campaign of “insults” and “defamation” against Islamic scholar Fethullah Gülen and his Hizmet movement, which he considered an attempt to "eradicate a civil society movement.” [43]

Erdoğan's government dismissed or reassigned thousands of police officers and hundreds of judges and prosecutors - including those leading the investigation - and passed a law increasing government control of the judiciary. [44]

Cabinet reshuffle

In a speech to the press on the evening of 25 December, Prime Minister Recep Tayyip Erdoğan announced the reshuffle of 10 members of his cabinet [26] in light of the scandal, saying that the reshuffle was to replace the three ministers who had resigned earlier in the day and others who were planning mayoral runs in the local elections in March 2014. This included the removal of Minister for European Union and Chief Negotiator Egemen Bağış, another figure in the scandal, from office. [45] [46] The changes to the cabinet are: [47]

Other controversies

On 24 December, another video began to circulate that shows Ali Erdoğan, nephew and bodyguard of Prime Minister Erdoğan, instructing a police commissioner to abuse the detainees who had protested his uncle and hurling insults at him when he refuses. [48]

On 23 December, 35-year-old Hakan Yüksekdağ, a police commissioner in the Smuggling and Battle Against Organized Crimes Department of the Ankara Province Security Directory, was found dead in his car. His relatives dispute the official claim that Yüksekdağ committed suicide. [49]

On 24 December, Abdi Altınok, an Assistant Chief of Police in the Isparta Province Security Directory, committed suicide. [50]

Billionaire Babak Zanjani, an alleged partner and accomplice of Reza Zarrab, was arrested in Iran on 30 December. [51]

See also

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References

  1. 1 2 3 4 Why Turkey’s Mother of All Corruption Scandals Refuses to Go Away - ForeignPolicy.com
  2. 1 2 "Recap Of Corruption Scandal In Turkey". Business Insider. Retrieved 29 December 2015.
  3. 1 2 Özgür Altuncu (23 December 2013). "Başbakan Erdoğan Pakistan'da havai fişeklerle karşılandı" [Prime Minister Erdoğan was greeted in Pakistan with fireworks]. Hürriyet Daily News (in Turkish). Retrieved 7 November 2014.
  4. ↑ "Büyük rüşvet operasyonunda gözaltına alınanların işlemleri sürüyor" [Great bribery operation continues operations in detainees]. Sözcü (in Turkish). 18 December 2013. Retrieved 7 November 2014.
  5. ↑ "İstanbul'da yolsuzluk ve rüşvet operasyonu" [Corruption and bribery operation in Istanbul]. Hürriyet Daily News (in Turkish). 17 December 2013. Retrieved 7 November 2014.
  6. ↑ "Turkish PM Erdoğan says those who target him through graft probe will not succeed - POLITICS".
  7. ↑ "Üç bakana rüşvet suçlaması" [Three facing charges of bribery]. Radikal (in Turkish). 18 December 2013. Archived from the original on 19 December 2013. Retrieved 18 December 2013.
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  11. ↑ "Operasyonda Ele Geçirilen Para Miktari" [The amount of money seized in operation] (in Turkish). Aktif Haber. 20 December 2013. Archived from the original on 6 June 2015. Retrieved 7 November 2014.
  12. ↑ "2 Bakan oğlu ile Reza Zarrab tutuklandı" [Reza was arrested with two Ministers son Zarraba]. Hürriyet Daily News (in Turkish). 21 December 2013. Retrieved 7 November 2014.
  13. ↑ "Operasyonda toplam tutuklu sayısı ve isimler" [The total number of prisoners and the operation names]. Cumhuriyet (in Turkish). 21 December 2013. Retrieved 7 November 2014.
  14. ↑ "Erdoğan oğlunu koruyor: Soruşturma savcıdan alındı!" [Erdoğan remains sons were taken from prosecutors investigating!]. SoL (in Turkish). 26 December 2013. Retrieved 7 November 2014.
  15. ↑ "Report: Al Qaeda suspects flee after Turkish gov't blocks raid". Today's Zaman . 26 December 2013. Archived from the original on 8 November 2014. Retrieved 7 November 2014.
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  18. ↑ "İşte ikinci dalgadaki gözaltı listesi!" [Here is the list of detainees in the second wave!]. SoL (in Turkish). 27 December 2013. Retrieved 7 November 2014.
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  22. ↑ "Adli Kolluk Yönetmeliği'nde değişiklik yapıldı" [Changes were made to the Judicial Police Regulation]. Hürriyet Daily News (in Turkish). 21 December 2013. Retrieved 7 November 2014.
  23. ↑ Zeynep Gürcanli (23 December 2013). "Adli Kolluk Yönetmeliği'ne iptal davası" [Regulation of Judicial Police action for annulment]. Hürriyet Daily News (in Turkish). Retrieved 7 November 2014.
  24. ↑ "Danıştay Adli Kolluk Yönetmeliği'ni durdurdu" [Judicial Police stopped by the State Council Regulations]. Hürriyet Daily News (in Turkish). 28 December 2013. Retrieved 7 November 2014.
  25. ↑ "MHP'li Vural: Hükümet, operasyonun üstünü örtüp delilleri karartmaya çalışıyor" [MHP Vural: The government is trying to evidence the top of the wrap operation blackout]. Zaman (in Turkish). Xinhua News Agency. 18 December 2013. Archived from the original on 8 November 2014. Retrieved 7 November 2014.
  26. 1 2 "Turkish PM Says He Is Target of Graft Probe". Intimated. Associated Press. 26 December 2013. Archived from the original on 27 December 2013. Retrieved 26 December 2013.
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  28. ↑ "Başbakan: İninize Gireceğiz Didik Didik Edeceğiz" [Prime Minister: We'll enter your Lair We Will Die] (in Turkish). Dokuzeylulgazetesi.com. 22 December 2013. Archived from the original on 8 November 2014. Retrieved 7 November 2014.
  29. ↑ "Hakan Şükür istifa etti" [Hakan Şükür resigns] (in Turkish). TRT Haber. 16 December 2013. Retrieved 7 November 2014.
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  31. ↑ "Turkey Gas For Gold Deal With Iran". Business Insider. 27 December 2013. Retrieved 29 December 2015.
  32. ↑ Esra Kaya (22 December 2013). "Ülkemizde tutmayız" [We do not keep our country]. Hürriyet Daily News (in Turkish). Retrieved 7 November 2014.
  33. ↑ "Sağlık Bakanlığı'nda Muhammed Mısır istifa etti" [Minister of Health Muhammed Mısır has resigned] (in Turkish). Bugun.com.tr. 24 December 2013. Archived from the original on 8 November 2014. Retrieved 7 November 2014.
  34. ↑ "Bakan Çağlayan ile Güler istifa etti" [Ministers Çağlayan and Güler resigned]. Hürriyet Daily News (in Turkish). 25 December 2013. Retrieved 7 November 2014.
  35. ↑ "Erdoğan Bayraktar istifa etti" [Erdoğan Bayraktar has resigned]. Hürriyet Daily News (in Turkish). 25 December 2013. Retrieved 7 November 2014.
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  37. ↑ "İdris Naim Şahin istifa etti" [İdris Naim Şahin resigns]. Hürriyet Daily News (in Turkish). 25 December 2013. Retrieved 7 November 2014.
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  40. ↑ "AKP Ankara Milletvekili Haluk Özdalga da istifa etti" [AKP Ankara deputy Haluk Özdalga resigned]. Sözcü (in Turkish). 27 December 2013. Retrieved 7 November 2014.
  41. ↑ "Ertuğrul Günay AKP'den istifa etti" [Ertugrul Gunay resigned from the AKP]. Hürriyet Daily News (in Turkish). 27 December 2013. Retrieved 7 November 2014.
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  48. ↑ "Erdoğan'ın yeğeni karakol bastı" [Erdoğan's nephew station raided] (in Turkish). Ulusal Kanal. 24 December 2013. Archived from the original on 8 November 2014. Retrieved 7 November 2014.
  49. ↑ "Emniyet Müdürü'nün yakınları: İntihar olamaz, büyük bir operasyon" [Relatives Chief of Police: Suicide not a big operation] (in Turkish). Sol. 23 December 2014. Retrieved 7 November 2014.
  50. ↑ "Emniyet Müdür Yardımcısı intihar etti" [Deputy Chief Constable commits suicide] (in Turkish). Ntvmsnbc. 24 December 2013. Archived from the original on 8 November 2014. Retrieved 7 November 2014.
  51. ↑ "Iranian billionaire Babak Zanjani 'arrested'". BBC News. 30 December 2013. Retrieved 7 November 2014.
  52. ↑ "'Görevden almak zorundayım'" ['I have to dismiss'] (in Turkish). Vatan. 8 January 2014. Archived from the original on 14 January 2014. Retrieved 8 January 2014.
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