Turkish banking regulator’s wedding gifts trigger investigation

Turkish Banking Regulation and Supervision Agency (BDDK) Deputy Chairman Mustafa Aydın is under scrutiny for accepting substantial wedding gifts from bank executives whom he is responsible for regulating.

Treasury and Finance Minister Mehmet Şimşek, upon returning from a trip to the United States, immediately ordered an investigation into the matter, stating that “necessary actions will be taken,” Ministry sources told YetkinReport.

The BDDK is an institution affiliated with the Ministry of Treasury and Finance.

According to ministry sources, Şimşek was informed about the details surrounding the BDDK Deputy Chairman’s wedding after returning from high-level investor meetings in the US.

Expressing his discomfort with the situation, Şimşek promptly ordered an investigation into Aydın and the wedding invitations.

Controversial wedding

The issue came to light with journalist Timur Soykan’s scoop in Birgün newspaper.

Attending the wedding, Soykan reported that, Aydın invited general managers of banks that he is responsible for supervising to his wedding ceremony.

These executives reportedly did not arrive empty-handed, with each presenting wedding gifts valued between 150,000 and 350,000 Turkish liras (approximately $4,700 to $11,000 USD). The gift-giving ceremony is said to have lasted for an extended period.

The presence of Alpaslan Çakar, General Manager of Ziraat Bank and Chairman of the Turkish Banks Association, at the wedding adds another layer of complexity to the situation.

It’s worth noting that BDDK Chairman and former Central Bank Governor Şahap Kavcıoğlu was also invited as a witness to the marriage ceremony, though it’s unclear whether he participated in the gift-giving.

Violate laws

The acceptance of expensive wedding gifts by a BDDK executive from companies he is tasked with regulating is alleged to violate several laws:

1. Article 29 of the Civil Servants Law (No. 657) prohibits state employees from accepting gifts or borrowing money from business owners, even if not directly related to their duties.

2. The Public Officials Ethics Regulation, based on Law No. 5176, defines gifts as “any item or benefit, accepted directly or indirectly, that affects or has the potential to affect the impartiality, performance, decision, or duty of a public official.”

Mehmet Gün, President of the Better Justice Association, points out that Article 250 of the Turkish Penal Code defines the crime of “extortion” (also known as misconduct in office) as a “twin of bribery” punishable by imprisonment. Gün suggests that Aydın’s case should also be evaluated within this context.

Political connections

The wedding guest list reportedly included several politicians from the Nationalist Movement Party (MHP), including Parliamentary Deputy Speaker Celal Adan and other party executives and MPs, as noted by journalist Soykan.

Legal expert Gün warns that such incidents could negatively impact Turkey’s recent removal from the OECD’s grey list, a development that Finance Minister Şimşek had just announced.

As of now, it remains unclear whether this BDDK crisis will be limited to the investigation ordered by Şimşek or if it will be addressed in President Erdoğan’s cabinet meeting scheduled for September 30.