Former Turkish deputy minister arrested in fund manipulation scandal

Arrest and charges

Fatma Betul Sayan Kaya, a former minister and deputy chair of President Recep Tayyip Erdogan's ruling Justice and Development Party (AKP), was placed in detention pending trial on Friday as part of an investigation into an investment fund scandal, according to state-run news agency Anadolu.

An Istanbul court remanded Kaya in custody on charges of "violating the capital markets law and membership of an organization established for the purpose of committing crimes," Anadolu reported. Her husband was released on condition that he regularly report to police.

Kaya served as family minister from 2016 to 2018 and until recently was a deputy chair of the AKP. She resigned on September 26 following allegations by the Yeni Party that she had made huge profits from an investment scandal.

Allegations and investigation

Yeni Party Chairman Zeynel Emre has accused Sayan Kaya and her husband of receiving 2.17 billion lira ($43 million, €38.4 million) after reportedly investing 163 million lira in one of the funds, then selling their shares shortly before suspected price manipulation by investment funds triggered a stock market crisis that led the financial regulator to dissolve 131 funds.

The couple denied any wrongdoing but have transferred some of the said money to an account designated by the banking regulators.

More than 430 people are under investigation over "suspected market manipulation and insider trading," including 112 who have been arrested as part of the scandal, Justice Minister Akin Gurlek said this week.

Opposition response

Main opposition leader Ozgur Ozel said the members of the committee set up by Erdogan to deal with the fund crisis had themselves been detained as part of the same investigations. Mentioning Gurlek by name, Ozel argued that Erdogan should "take a closer look at those close to him."

Speaking in parliament on Tuesday, Ozel claimed that Erdogan was ultimately responsible for the scandal and called on the president either to resign or to take the country to elections.

Sources

• dw.com: Turkey: Ex-minister arrested in fund manipulation scandal
• apnews.com: Turkish authorities arrest ex-minister Fatma Betul Sayan Kaya in share-price scandal | AP News

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