TODAY’S ZAMAN, ANKARA
In the midst of a shocking graft probe that caused two Cabinet ministers from the ruling Justice and Development Party (AK Party) to resign on Wednesday, it has emerged that a whistleblower expecting a monetary reward from the Finance Ministry was the one to give state institutions vital details of the alleged corruption, the Taraf daily reported on Wednesday.
Although the ruling party has usually dismissed the idea of government corruption in the past by denouncing such claims as a Western plot to undermine the government, the information that kick-started the corruption probe originated from Russia and a domestic whistleblower with the initials Ş.D., the daily stated.
An Iranian businessman of Azerbaijani origin, Reza Zerrab, who has now been detained as part of the recent graft probe, is a central figure in the investigation in which four ministers, Interior Minister Muammer Güler, Economy Minister Zafer Çağlayan, both of whom resigned, Environment and Urban Planning Minister Erdoğan Bayraktar and EU Affairs Minister Egemen Bağış, have been implicated. The sons of Güler, Çağlayan, Bayraktar and Süleyman Aslan, general manager of the public Halkbank, have also been implicated in the alleged corruption.
Money laundering largely connected to Iran
Zerrab, arrested last week in the investigation, is claimed to have distributed TL 137 million ($66 million) in bribes to three ministers and their sons to cover up faked exports and money laundering, which are reported to be largely connected with Iran. Ş.D. reportedly sent tip-offs to the Ministry of Finance about Zerrab’s alleged bribery, as well as to the offices of the prime minister and president.
According to the daily’s report, the Russian Federal Customs Service laid the foundations of the investigation when it discovered, in December 2011, millions of dollars in cash in a suitcase belonging to an individual returning to Russia from Turkey. When the Russian investigation revealed money laundering activities between Russia and Turkey, the Russian authorities informed Turkey of the illegal activity, the daily stated. The information provided by Ş.D., a year after Russia notified Turkey of the illegal activity, assisted Turkish authorities in discovering how the money laundering was being performed.
According to the daily, on Dec. 14, 2011 Russian police discovered a total of $18.5 million in a suitcase at Moscow’s Vnukovo Airport. The Russian authorities found that four suspects detained in Russia were involved in money laundering and had transported, in 37 trips, a total of $40 million and 10 million euros between Russia and Turkey.
Four more banks also involved
Turkey’s Financial Crimes Investigation Board (MASAK) first launched an investigation into gold smuggling and money laundering after Russia, in October of last year, submitted a report on the issue to the İstanbul Chief Prosecutor’s Office, the daily reported. Following a tip-off from Ş.D. in December 2012, MASAK’s investigation into the issue was widened accordingly.
Ş.D. reportedly sent documents to MASAK naming a number of banks and certain companies owned by Zerrab. According to the daily’s report, Ş.D. claimed in the documents that huge amounts of illicit money, at least $87 billion, had been transferred to Turkey in the period around 2010 by Zerrab without the Ministry’s knowledge.
Ş.D. also wrote in the documents sent to MASAK, according to the daily, that the İstanbul branch of Aktif Bank, along with the head branches of Garanti Bank, DenizBank and Kuveyt Türk, were involved in illicit money transfers.
Also, read:
Reza Zerrab accused of illegal transfer of €87bn from Iran and other grave crimes