Erdogan aide named suspect in Turkey financial scandal

Turkish prosecutors have authorized a formal investigation into a leading figure in Turkish President Recep Tayyip Erdogan’s ruling Justice and Development Party (AKP) over allegations that she and her husband profited from share transactions linked to a massive market-manipulation scandal that is rocking the country.

Former AKP deputy chairwoman Fatma Betul Sayan Kaya and her husband, Ilyas, are due to appear at the Istanbul Courthouse today to give statements as part of the investigation. The scandal erupted after a liquidity crisis in the investment fund market triggered a sharp sell-off on the Borsa Istanbul, with the benchmark BIST 100 falling 5.54% on Sept. 16. The immediate panic subsequently eased, but the index ended September down 16.65%, its worst monthly performance since the 2008 global financial crisis.

Kaya stepped down from her role on Sept. 26 amid mounting criticism that she was being shielded by the government. Will she be the sacrificial lamb, or will other officials and AKP members also be investigated for their potential involvement? More than 450,000 investors affected by the crisis will be watching closely.

Speaking before an AKP gathering on Wednesday, Erdogan said the government was closely monitoring the situation and taking the requisite measures to ensure that investors would get their money back. “Those who have violated the rights of the nation, made unjust gains, acted out of greed and committed fraud will answer for it both before Turkish courts in this world and before God in the afterlife,” he said.