Türkiye's capital markets will emerge from the fund turmoil cleansed of "greedy parasites," President Recep Tayyip Erdoğan said Wednesday, reiterating that the government would do whatever is necessary to resolve the problem.
Erdoğan said the administrative and political burden of the affair rested on the government's shoulders.
Regulators last month ordered the liquidation of over 130 investment funds managed by seven asset managers following warnings by some that they could not meet redemption payments.
Authorities have since widened their investigation into suspected market manipulation in stocks and fund markets. Eighty-five suspects have been arrested so far in the probe, Justice Minister Akın Gürlek said Tuesday.
The funds ordered to be wound down had reached more than $20 billion (TL 983.94 billion) in assets over just three years. Nearly half a million investors have been affected, according to authorities.
Erdoğan said all relevant bodies were following the matter closely and had taken measures. He said those who infringed on the public's rights, made unjust gains or committed fraud would be held accountable.
He said the economic leadership and other institutions were taking the steps needed for financial markets to come out of the crisis stronger and healthier. He said the government was also following the investor side of the problem carefully.
"We are putting in motion the necessary administrative and legal processes so that our citizens' savings are paid as soon as possible, without placing a burden on the public," he said.
The newly created Fund Coordination Board, chaired by Vice President Cevdet Yılmaz, has been tasked with overseeing the liquidation of the funds. The State Supervisory Council (DDK) has also been assigned to examine the issue.
"We will not turn a blind eye to the slightest negligence or any breach of law or rules," Erdoğan said.
He said some were waiting eagerly for Türkiye’s economy to fall into crisis, but that at the end of this process Turkish capital markets would shed their impurities and rid themselves of "greedy parasites that feed on small investors' savings." He said the financial system would emerge sounder and healthier and continue to grow stronger.
Erdoğan said the matter had judicial, administrative and political dimensions.
The independent judiciary would do its own work, he said. Economic actors were taking the steps required in their own areas of responsibility. Questions of conscience, ethics and belief, he said, were a matter for each individual. "But the burden on the administrative and political side of the issue is on our shoulders," he said.
On the political side, Erdoğan said the issue could not be separated from conscience, morality and faith. He said his party had adopted the principle that "politics has only one harbor, and that is morality" when it was founded. He said the movement was built on belief, ethics and trust.
"No matter who stands in our way as we serve our people, our country, and our Muslim community, we will leave them aside and keep walking," said the president.
Fatma Betül Sayan Kaya resigned last month as a deputy chair of the Justice and Development Party (AK Party) after she and her husband were alleged to have made substantial profits trading shares ahead of the turmoil.
The two were to give statements as suspects on Wednesday as part of the investigation, the Justice Ministry said.
The ministry said they would be questioned by the Istanbul Chief Prosecutor's Office's money laundering crimes investigation bureau.
The Capital Markets Board (SPK) is also expected to file criminal complaints against the two under the country's Capital Markets Law as part of the investigation, the ministry said.
