A senior prosecutor’s office in Istanbul has launched a formal inquiry into the assets of former Justice and Development Party (AKP) minister Fatma Betül Sayan Kaya and her husband, expanding a sprawling financial scandal that has already resulted in 56 detentions, travel bans on high‑profile businessmen and a market plunge estimated at nearly 4 trillion Turkish lira.
Scope of the investigation
According to Bloomberg HT, the Başsavcılık announced that it will examine the couple’s property holdings as part of a broader probe into a fund that was placed under liquidation last year. The Capital Markets Board (SPK) has simultaneously issued a payment roadmap for investors in the dissolved fund, a move reported by the same outlet.
Law enforcement actions have swept across several sectors. The head of the Turkish Football Federation’s refereeing committee and his deputy were arrested, as were the chief of the national referees’ association and his deputy, reported by The Daily Gazette and AOL.com. A travel ban was imposed on Astor billionaire Feridun Gecgel, whose passport was confiscated by U.S. authorities, per Türkiye Today and Haberler. In total, 12 suspects have been formally charged, five of whom remain in custody while seven are under judicial control, according to local sources.
Political and economic fallout
The scandal has spilled into the political arena. AKP MP Nihat Zeybekci, speaking to Cumhuriyet, affirmed that he is among the 455,000 individuals who have been financially harmed by the fund’s collapse, acknowledging the personal impact on party members. President Recep Tayyip Erdoğan met with representatives of the Turkish Special Athletes Federation, as reported by Son Dakika, signaling a desire to contain the unrest within the sports community.
Market repercussions have been severe. Business Turkey Today estimates that the Borsa Istanbul lost close to 4 trillion lira in market value due to the scandal, a figure that underscores the depth of investor losses. Despite the turmoil, the Economic Confidence Index rose modestly to 101.3 in September, indicating a tentative rebound in sentiment, according to local economic data.
"The fund scandal has wiped out nearly 4 trillion Turkish lira in market value on Borsa Istanbul," the report noted.
Analysts cite the involvement of government insiders in alleged stock manipulation as a key driver of the losses. A jailed Istanbul mayor, cited by Turkish Minute, claimed that officials close to the ruling party profited from illicit trading during the spying trial, a charge that adds a layer of political intrigue to the financial misconduct.
Security concerns have also surfaced. Social‑media platform X has blocked almost 500 accounts linked to the investigation, according to Gazeta Express, raising questions about information control and the flow of evidence.
International observers are taking note. Westphalia‑Lippe Minister‑President Mike Wüst of Germany’s North Rhine‑Westphalia warned that the customs union between the EU and Turkey needs reform, reflecting broader European unease about the scandal’s implications for bilateral trade, as reported by Son Dakika. The United States' involvement in seizing Gecgel’s passport further highlights the cross‑border dimension of the case.
Authorities have emphasized that the investigation is ongoing and that additional arrests are possible. As the probe widens, it threatens to erode public trust in the AKP ahead of upcoming elections and could reshape Turkey’s regulatory landscape for capital markets and sports governance alike.
