Turkish prosecutors issued detention warrants for 23 suspects linked to the Istanbul Gold Refinery and related companies on a charge of obtaining state support through fraudulent means, according to reports on Monday.
The statement from the Istanbul chief prosecutor's office said the 23 suspects were accused of violating the central bank law, a public finance law and a law related to the protection of the Turkish lira's value.
The report by the Anadolu Agency (AA) indicated that 21 suspects have been detained.
The report also cited that, according to the investigation, the individuals have allegedly exploited the support related to supporting the conversion of firms' foreign exchange (FX) obtained from abroad into Turkish liras.
It recalled that the Central Bank of the Republic of Türkiye (CBRT) published an "Implementation Instruction on the Communiqué Supporting the Conversion of Companies' Foreign Exchange Revenues from Abroad into Turkish Lira."
Under this policy, the government provided a 3% support rate to companies that brought foreign currency into the country through exports. However, it was determined that some individuals exploited this support by importing gold mines from abroad through companies under legal frameworks to receive the government incentive.
Moreover, it was found that the gold ore imported by the companies was melted in gold smelters in the country. The melted gold was then mixed with acid solutions to falsely present it as processed, thereby legally exporting the resulting valuable metal components abroad and earning foreign exchange income from it.
The companies received the 3% government support on the earned foreign exchange, and it was found that this operation was organized systematically to defraud the state and generate illicit income. The report suggested that 24 new companies were established under the names of the suspects and 30 employees of the companies in order to receive state support.
In the probe, it was determined that they caused the state a loss of nearly $12.54 million, the AA report said.
Following the detention order of the prosecutor's office, a synchronized operation was conducted in 12 districts of Istanbul by the Istanbul Provincial Gendarmerie Command.
In the operation, 21 of the 23 identified suspects were detained, and efforts continue to capture two other fugitives.
