Turkey court jails former minister in funds probe

A Turkish court jailed a former minister and senior member of the ruling AK Party early on Friday in an investigation into the country’s fund crisis, state-run Anadolu Agency and other domestic media said. Fatma Betul Sayan Kaya, who quit the party after stepping down in September from her role as deputy chairperson, was accused by an opposition politician of making a large profit on shares just before the crisis triggered a major stock market selloff. An Istanbul court arrested Kaya, who was minister of family and social services from 2016 to 2018, on charges of “violating the law on capital markets” and “membership of an organisation established for the purpose of committing a crime”, Anadolu said. The move followed her questioning by the bureau that investigates money laundering crimes for the Istanbul chief prosecutor’s office, it added. Her husband, Ilyas Kaya, was released under judicial measures banning travel abroad in the same investigation. The prosecutor accused Kaya of possessing undisclosed information likely to influence the price or value of a capital market instrument. The official added that she had contacts with Emre Tezmen, a former executive of one of the asset managers at the centre of the turmoil, according to Anadolu. In September, a spokesman of the main opposition Yeni Party accused the couple of receiving about 2.17 billion lira ($43.27 million) from sales of investments to the tune of a combined 163 million lira ($3.25 million), mainly in shares of shipbuilder Ozata Denizcilik, made in April this year. Ozata Denizcilik shares traded at around 220 lira at the start of April and rose to 4,980 lira on September 15, before the turmoil in the investment fund industry. Suspected share-price manipulation in thinly traded stocks triggered a liquidity crisis and sent share prices tumbling on September 16.