TURKEY — 45 arrested after a financial scandal

ISTANBUL, September 25 (ATSH–AFP) — A total of 45 people have been arrested in Turkey in an investigation into a scandal involving investment funds, Turkish authorities said today, while the finance minister denied rumors of his resignation.

“Legal proceedings have been initiated against a total of 76 suspects, 45 of whom have been detained,” Turkish Justice Minister Akın Gürlek said on X.

“The assets of all fund owners and suspects holding managerial positions have been seized. The assets of their close family members have been frozen,” he continued.

According to Turkish media, among those arrested is Erkan Kilimci, a former deputy governor of the Central Bank.

Prosecutors are investigating the fraudulent activities of 131 investment funds owned by seven companies, whose combined assets are worth more than 826 billion Turkish lira (approximately 15 million euros), according to calculations by local media.

All 131 funds were liquidated on September 17 by Turkey’s Capital Markets Authority (SPK), which said they managed the assets of more than 455,000 individual investors.

On Thursday evening, Finance Minister Mehmet Şimşek dismissed rumors of his departure as “unfounded.”

“Such speculative information, aimed at our country’s economic stability, should not be taken seriously,” he said on X.

The investigation focuses in particular on accusations of organized crime, fraud against the state and violations of financial markets law, as well as tax evasion.

But a growing number of voices are being raised, questioning in particular the regulators’ inability to intervene earlier in this case.