ANKARA — A deputy chair of President Recep Tayyip Erdogan’s ruling Justice and Development Party resigned Saturday after an opposition lawmaker accused her of reaping large gains from stock trades made shortly before a funds-led market crisis shook Turkey’s financial system.
Fatma Betul Sayan Kaya, who oversees social policy for the AK Party and previously served as family minister from 2016 to 2018, informed party leadership she had asked to be relieved of her duties so the allegations could be examined, according to statements reported by Reuters.
Allegations and the transactions at issue
The claims were brought by Zeynel Emre, spokesman for the main opposition Yeni Party, who said Kaya and her husband, Ilyas Kaya, made combined investments of 163 million lira in April. Emre said the purchases were concentrated largely in shares of shipbuilder Ozata Denizcilik and that the couple later sold those holdings for about 2.17 billion lira.
"She considered it necessary to take political responsibility while the allegations were examined," Kaya wrote on X, according to reporting.
Share-price moves cited by investigators underline the scale of the gains alleged. Ozata Denizcilik shares were reported to have traded around 220 lira at the start of April and surged to approximately 4,980 lira by Sept. 15, before a sharp reversal of fortunes as a liquidity crunch unfolded on Sept. 16.
The timing of those transactions is a focal point for critics, who say the pattern raises questions about whether the trades were made ahead of market-sensitive developments that later precipitated a selloff in thinly traded stocks.
Broader financial fallout and official action
The trading allegations come amid wider strains in Turkey’s investment fund industry. Regulators and authorities moved last week to shore up financial stability after some investment funds were unable to meet redemption requests from nearly half a million investors during the selloff.
In related developments, Ozata Denizcilik said in a regulatory filing that its chairman, Ozdemir Ataseven, and vice chairman, Gokhan Ataseven, had been detained and jailed pending trial as part of probes into the funds crisis.
| Figure | Amount |
|---|---|
| Reported investment in April | 163 million lira |
| Reported proceeds from sale | 2.17 billion lira |
| Ozata share price (start of April) | ~220 lira |
| Ozata share price (Sept. 15) | ~4,980 lira |
| Investors with withdrawal problems | ~500,000 (reported) |
Turkish authorities have not publicly confirmed criminal charges against Kaya. She did not provide additional comment beyond her statement that she sought to step down while the allegations were investigated.
Political and market implications
The resignation adds political turbulence to a situation already fraught for Ankara. The AK Party faces scrutiny over governance and transparency at a moment when confidence in parts of Turkey’s financial sector has been severely tested by abrupt price fluctuations and liquidity shortfalls.
Analysts and investors will be watching how quickly regulators and prosecutors move to clarify the facts and whether further entanglements involving corporate executives or fund managers emerge. The detentions of Ozata’s senior executives suggest investigators are examining links between corporate actors and the liquidity pressures that rippled across the market.
For now, the episode underscores a broader risk for emerging-market investors: sudden, severe dislocations can expose gaps in oversight and corporate governance, with political fallout that extends beyond financial circles.
- What happened: Fatma Betul Sayan Kaya resigned from AK Party duties after allegations of large share gains.
- Why it matters: The claims are tied to a funds crisis that hampered withdrawals for about half a million investors and prompted regulatory intervention.
- Next steps: Investigations into trading and the detention of Ozata executives continue; authorities have taken measures to stabilize markets.
Reporting for Reuters contributed to this story. Currency conversion in the original reporting placed $1 at 48.9163 lira.
