**Deputy Chair of Turkey’s AK Party Resigns Amid Allegations of Share Trading Profits**
In a significant political development, Fatma Betul Sayan Kaya, the deputy chair of Turkey's ruling Justice and Development Party (AK Party), has resigned following allegations of insider trading. The accusations surfaced from an opposition politician who claimed that Kaya profited substantially from stock transactions just before a financial crisis led to a major selloff in the Turkish stock market.
Kaya, who has been responsible for social policies in the AK Party and served as the family minister from 2016 to 2018, announced her decision late on Saturday. She stated that she had requested President Tayyip Erdogan to relieve her of her duties to allow for a thorough investigation into the allegations against her.
The controversy erupted after Zeynel Emre, a spokesman for the main opposition Yeni Party, held a press conference where he accused Kaya and her husband, Ilyas Kaya, of making a substantial profit from their investments. According to Emre, the couple invested approximately 163 million lira (around $3.3 million) in shares of the shipbuilding company Ozata Denizcilik in April 2023. They reportedly sold these shares for about 2.17 billion lira (approximately $44 million) shortly before a liquidity crisis hit Turkey’s investment fund industry.
Emre highlighted the timing of the transactions as particularly suspicious. Ozata Denizcilik shares were valued at around 220 lira at the beginning of April, but surged to 4,980 lira by September 15. This rapid increase occurred just before a crisis in the investment fund sector, which was exacerbated by alleged manipulation of share prices in thinly traded stocks. The crisis culminated in a liquidity crunch that caused share prices to plummet on September 16.
In response to the allegations, Kaya expressed her belief that it was necessary to take political responsibility while the claims are under scrutiny. She did not provide further details regarding the specifics of the allegations but emphasized her willingness to cooperate with any investigations.
The fallout from this situation comes amid broader financial instability in Turkey. In recent days, Turkish authorities have implemented measures to bolster financial stability, especially after several investment funds struggled to meet withdrawal requests from nearly half a million investors during the stock market turmoil.
In a related development, Ozata Denizcilik announced in a regulatory filing that its chairman, Ozdemir Ataseven, and vice chairman, Gokhan Ataseven, have been jailed pending trial as part of an ongoing investigation into the funds crisis. This move reflects the seriousness of the situation and the government's commitment to addressing the allegations of financial misconduct.
Kaya's resignation marks a notable moment in Turkish politics, particularly given the AK Party's long-standing dominance under President Erdogan. The party has faced increasing scrutiny and criticism in recent years, particularly regarding economic management and transparency. As investigations proceed, the implications of this incident could extend beyond Kaya's political career, potentially impacting the AK Party's standing in the eyes of the public and investors alike.
The situation remains fluid, and further developments are expected as authorities continue their investigations into the allegations of financial impropriety and the broader implications for Turkey's economic landscape.