A Turkish court has jailed former family and social services minister Fatma Betul Sayan Kaya as part of an investigation into a crisis in the country’s investment fund industry. The decision was reported by state-run Anadolu Agency and other local media on Friday. Kaya previously served as a senior member of the ruling AK Party before leaving the party after stepping down from her deputy chair position in September.
The investigation centres on allegations involving investment transactions made before a major market disruption. An opposition politician had accused Kaya and her husband of making a large profit from share sales shortly before the crisis affected the country’s investment fund sector. Prosecutors are examining whether she had access to undisclosed information that could have influenced the value of financial instruments.
According to Anadolu, an Istanbul court ordered Kaya’s arrest on charges related to violations of capital markets law and membership of an organisation allegedly established to commit crimes. The former minister was questioned by a bureau responsible for investigating money laundering before the court decision. Her husband, Ilyas Kaya, was released under judicial conditions that prevent him from travelling abroad.
The allegations include claims that the couple received around 2.17 billion Turkish lira from investment sales worth a combined 163 million lira. Much of the activity reportedly involved shares in shipbuilder Ozata Denizcilik. The company’s share price rose sharply between April and September before a wider disruption in the investment fund industry affected the market.
The investigation follows a period of unusual movements in some thinly traded shares. Suspected price manipulation contributed to a liquidity crisis and a major market selloff in September. Authorities are examining whether investors had access to information that was not available to the wider market and whether any rules were broken.
Kaya has not been convicted, and the allegations remain subject to the legal process. The court proceedings will need to establish whether the claims can be supported by evidence. The investigation may also examine the role of other people connected to the investment funds and the transactions under review.
The case has drawn attention because of Kaya’s former government position and the scale of the financial allegations. It also comes at a sensitive time for Turkey’s financial sector, which has faced questions about market transparency and investor confidence. The investigation is expected to remain closely watched as authorities continue their work.
