Erdogan Faces Deepest Political Crisis Amid Sweeping Corruption Probe
Turkish President Recep Tayyip Erdogan faces a severe internal political crisis as a major capital markets corruption scandal implicates senior members of the ruling AKP party, including a former government minister.
Turkish President Recep Tayyip Erdogan is confronting one of the gravest political crises in the ruling party's history as a sweeping corruption scandal implicates top party figures. According to prominent Turkish journalist and commentator Zafer Sahin, the Justice and Development Party (AKP) is facing its most severe challenge in 25 years. Sahin noted that while Erdogan has weathered coup attempts and economic crises, the current threat emerges from within party ranks rather than external opponents.
The scandal erupted following widespread investigations into Turkey's capital markets, involving stock manipulation, insider trading, and illicit financial gains. Speaking to reporters aboard his presidential aircraft after returning from South Korea, Erdogan expressed astonishment that individuals previously considered loyal were implicated. Bribe-taking, irregularities, and abuse of power are being systematically uncovered by the judiciary, the president emphasized.
A significant turning point in the probe was the arrest of Fatma Betul Sayan Kaya, a former Minister of Family and Social Policies and AKP deputy chairperson. Kaya is suspected of violating capital stock laws and engaging in suspicious transactions involving Ozata Denizcilik shipyard shares, alongside ties to Tera Investment. Opposition claims suggest Kaya and her husband invested approximately 163 million Turkish liras in shares and later liquidated them for about 2.17 billion liras. Kaya, who resigned from her party posts in September, has denied any wrongdoing.
The capital markets crisis prompted regulatory intervention in September, resulting in the liquidation of 131 investment funds managed across seven firms, affecting around 455,000 investors. The ongoing investigation now encompasses more than 430 individuals, with dozens arrested. Sahin asserted that Erdogan views the betrayal by close associates as a monumental test of integrity, vowing to hold all perpetrators accountable regardless of political ties.
