Turkish financial officials resign amid investment fund scandal

The Turkish financial administration is facing significant upheaval following a major investment fund scandal. Two high-ranking officials have stepped down from their posts: Mahmut Sutcu, the president of the Capital Markets Board (SPK), and Deputy Minister of Finance Osman Celik. Sutcu cited health reasons for his departure, while Celik requested immediate retirement. The move comes one month after the investigation into the funds was first disclosed. Celik is notably the father-in-law of Iskender Balci, a board member of the Ozata shipyard who was arrested as part of the ongoing probe.

Finance Minister Mehmet Simsek announced that the government is now demanding the return of excessive profits generated by investors involved in the funds. Authorities are targeting individuals who gained at least 10 million Turkish liras. Using a specialized algorithm, officials have identified these high-earning investors and forwarded their data to the Savings Deposit Insurance Fund (TMSF) and the Ministry of Justice. Simsek confirmed that some funds have already begun to be returned to special accounts. If investors do not return these profits voluntarily, the Ministry of Justice intends to initiate formal legal proceedings against them.