President Recep Tayyip Erdoğan said Tuesday that Türkiye’s economy will remain on a strong footing and citizens will be protected from losses in the ongoing fund investigation, as the government established a fully authorized board to oversee the liquidation process and pledged to pursue anyone responsible for wrongdoing.
Speaking at a meeting of the ruling Justice and Development Party (AK Party), Erdoğan said the government had finalized the steps it plans to take and drawn up a road map following discussions at Monday’s Cabinet meeting and a broader meeting Tuesday.
"We have established a fully authorized board chaired by our vice president to coordinate the process concerning the funds slated for liquidation,” Erdoğan said, adding that he had also instructed the State Supervisory Council to take part in the process.
"We will bring this process to a swift conclusion,” he said.
Erdoğan said he believed Türkiye would emerge from the process having addressed the problems exposed by the investigation, with its economy strengthened and capital markets placed on a healthier footing.
He sought to reassure the public that authorities were closely monitoring developments, saying the issue had been on the government’s agenda from the outset and that all relevant institutions were taking necessary measures.
The remarks come amid a widening investigation into transactions in Türkiye’s capital markets. The Capital Markets Board (SPK) earlier ordered investment funds managed by seven portfolio management companies to be closed to trading and decided to liquidate some of the funds as part of measures aimed at protecting investors.
Authorities have also stepped up judicial action. Five suspects were arrested Tuesday as part of investigations into capital market transactions, while prosecutors continue examining suspected offenses including fraud, money laundering and violations of capital markets legislation.
Fatma Betül Sayan Kaya, a former minister and AK Party deputy chair, announced late Saturday in a social media post that she has requested to be relieved of all her duties within the party, citing "various claims" concerning her. Her resignation came amid speculation over alleged links to the fund withdrawals investigation, which emerged earlier this month.
Erdoğan, who a day earlier stressed that the problems were confined to a limited segment of the fund market and did not pose a broader risk to Türkiye’s financial system, reiterated that the government would not tolerate wrongdoing involving public or state assets.
He said the AK Party remained committed to the principles and objectives on which it was founded 25 years ago and would part ways with those who engaged in wrongdoing or put personal interests ahead of those principles.
"We do not act in politics for ourselves or for personal gain, but for the peace, prosperity and successful future of 86 million people,” Erdoğan said.
Erdoğan added that the party would not treat unfairly anyone who had contributed to the movement but drew a clear line over misconduct involving public assets.
"We have no place for anyone who misappropriates state or public assets,” he said.
Erdoğan had said Monday that anyone found to have engaged in market-distorting activities through investment funds would be held accountable before the law, while emphasizing that Türkiye’s capital markets remained resilient and fundamentally sound.