Turkey fund crisis reaches AKP leadership

A deputy chair of President Tayyip Erdogan's ruling AK Party stepped down after an opposition politician accused her of making a large profit on shares just before a funds crisis triggered a major selloff on the country's stock market.

Fatma Betul Sayan Kaya, the AK Party's deputy chair responsible for social policies and who also served as family minister from 2016 to 2018, said late on Saturday she had asked Erdogan to relieve her of all her duties so the allegations could be investigated.

Main opposition Yeni Party spokesman Zeynel Emre alleged at a press conference on Saturday that Kaya and her husband, Ilyas Kaya, invested a combined 163 million lira ($3.3 million) in April this year mainly in shares of shipbuilder Ozata Denizcilik and later received about 2.17 billion lira ($44 million) from selling them.

Ozata Denizcilik shares traded at around 220 lira at the start of April and rose to 4,980 lira on September 15, before turmoil in Turkey's investment fund industry, as suspected share-price manipulation in thinly traded stocks triggered a liquidity crisis and sent share prices tumbling on September 16.

Emre alleged the timing of the transactions raised questions.

Kaya said on X that she considered it necessary to take political responsibility while the allegations were examined and asked Erdogan, to relieve her of all the posts she holds.

She did not comment further on the specifics of the allegation.

Turkish authorities took steps last week to support financial stability after some investment funds failed to meet withdrawals from almost half a million investors amid the selloff.

Ozata Denizcilik said in a regulatory filing on Friday that its chairman, Ozdemir Ataseven, and vice chairman, Gokhan Ataseven, had been jailed pending trial as part of an ongoing investigation into the funds crisis.

($1 = 48.9163 liras)