Turkish prosecutors have initiated a freeze on the assets of former Family and Social Policies Minister Fatma Betul Sayan Kaya and her husband, Ilyas Kaya. The action, directed by the Istanbul Chief Public Prosecutor’s Office, is part of an expanding probe into alleged irregularities within the nation's capital markets.
The investigation, managed by the bureau responsible for terrorism financing and money laundering crimes, follows a broader crackdown on investment funds. Authorities have already ordered the liquidation of 130 funds previously overseen by seven different portfolio management companies, a move prompted by significant liquidity issues and subsequent market losses. While estimates regarding the total value of these funds vary between 17.4 billion and 18.8 billion euros, the case involves hundreds of thousands of investors.
President Recep Tayyip Erdogan addressed the situation following a cabinet meeting, emphasizing that the government intends to address market wrongdoing while protecting the rights of citizens. Officials have appointed Is Bank and the state-owned Ziraat Bank to oversee the liquidation process, ensuring that investor funds are handled by financial institutions rather than confiscated.
The scrutiny surrounding the former minister intensified after allegations surfaced regarding specific share transactions. Reports suggest the couple invested approximately 2.9 million euros in the shipbuilder Ozata Denizcilik, later selling those shares for roughly 39.5 million euros. While media outlets claimed the pair subsequently transferred the proceeds to a government-designated account, these figures and the transfer have not been officially confirmed by authorities.
Fatma Betul Sayan Kaya, who served as minister between 2016 and 2018, previously resigned from her position as a deputy chair of the ruling Justice and Development Party (AKP) following the emergence of these allegations. The ongoing investigation has already resulted in the detention of 51 individuals linked to the suspicious transactions.
