Turkey: Ex-minister arrested in a major fund manipulation scandal

Former Turkish minister Fatma Betul Sayan Kaya was arrested on Friday in connection with a major fund manipulation scandal, according to Anadolu news agency. Kaya, who served as family minister from 2016 to 2018 and was a deputy chair of President Recep Tayyip Erdogan's ruling party, was placed in custody on charges of violating capital markets law and membership in an organization established for committing crimes.

Kaya's husband was released on the condition that he regularly report to police. Kaya resigned from her position on September 26 following allegations from the opposition Yeni Party that she made huge profits from an investment scandal. Yeni Party Chairman Zeynel Emre accused Kaya and her husband of receiving 2.17 billion lira ($43 million, €38.4 million) after investing 163 million lira in one of the funds, then selling their shares before suspected price manipulation triggered a stock market crisis.

Erdogan's government has been struggling with the backlash from the investment fund scandal, which broke out in September. Prosecutors are investigating allegations of widespread market manipulation affecting nearly half a million investors. Over 430 people are under investigation for suspected market manipulation and insider trading, including 112 who have already been arrested, Justice Minister Akin Gurlek revealed.

Opposition leader Ozel claimed that Erdogan is ultimately responsible for the scandal and called for the president to either resign or call for new elections. Ozel also mentioned that members of the committee set up by Erdogan to handle the fund crisis have been detained as part of the same investigations, referencing Justice Minister Akin Gurlek by name.