Turkey opposition accuses ministers in funds scandal

Turkey's main opposition accused two government ministers on Thursday of benefiting from an investment funds scandal that has affected more than 455,000 individual investors, allegations both ministers denied.

Umit Ozlale, a lawmaker from the opposition Yeni Party, named Trade Minister Omer Bolat and Family and Social Services Minister Mahinur Ozdemir Goktas as having benefited from the scandal.

“The full list of those involved in this fraud is on President Erdogan's desk,” Ozlale said. He said his party would publish documented evidence naming ruling AKP members allegedly involved in large transactions if President Recep Tayyip Erdogan did not share a complete list by Monday.

The crisis began when several investment funds imploded in mid-September, triggering a fall in Istanbul's main stock index. Trading in 131 investment funds was suspended the following day. The funds were managed by seven portfolio management companies and reportedly held about $17 billion in assets. Turkey's market regulator said more than 455,000 individual investors were affected.

The scandal has already led to the resignation of a senior governing party figure and former minister accused of making millions from trading shares in one of the companies involved.

Turkish media reported that prosecutors asked the finance ministry on September 30 for authorisation to investigate Ibrahim Omer Gonul, the former head of Turkey's Capital Markets Board. Prosecutors said there were “clear and sufficient indications” that Gonul had failed to fulfil his responsibilities during his four-year tenure, which ended in April.