AK Party Deputy Chair Quits Over Turkey Trading Claims

Fatma Betul Sayan Kaya, deputy chair of Turkey's ruling AK Party and a former family and social policies minister, resigned from her party post this week amid opposition allegations that she and her husband, Ilyas Kaya, made large profits from share trades tied to a $17 billion investment fund crisis, according to multiple reports.³²⁴⁹

Resignation

Bloomberg and the Associated Press reported that Kaya stepped down on 27 September, while Euronews and bne IntelliNews put the resignation a day earlier or later, on 26 and 28 September respectively; all accounts agree that Kaya asked President Recep Tayyip Erdogan to relieve her of her duties and that he accepted the resignation.³⁹⁶²

Kaya said: "I believe it's necessary to take political responsibility to ensure the office I hold doesn't become the subject of public debate." AK Party spokesman Omer Celik said the party would ensure accountability, stating: "If there is an allegation, it will be investigated. All irregularities will be brought to light. and that anyone found to have acted wrongfully would face consequences under the law."⁵⁵

The trading allegations

The Straits Times and the Associated Press reported that in April the couple put roughly 163 million lira into stock, primarily in the Istanbul-based shipbuilding firm Ozata Denizcilik, at a time when its shares were priced near 220 lira, though Euronews contests the reported scale of that initial outlay. Both outlets report that by 15 September the share price had climbed to 4,980 lira, and that the couple's sale of their stake brought in roughly 2.17 billion lira.⁴⁹²

Opposition Yeni Party spokesman Zeynel Emre provided additional details on 26 September, claiming the couple pulled 2.17 billion lira out of the Ozata Denizcilik deal; bne IntelliNews reported that the shares were sold to Tera Holding funds on 11 September, shortly before capital-markets activist Dilek Gungor publicly denounced the alleged manipulation, urging an end to reckless scorched-earth tactics in the markets. This market is nobody's personal playground!" Cumhuriyet reported that Fatma Betul Sayan Kaya paid 63.359 million lira and Ilyas Kaya 99.687 million lira for their respective share purchases.⁶⁷

The wider funds crisis

These transactions came amid a larger crisis in which Turkey's Capital Markets Board mandated the winding-down of 131 investment funds across seven portfolio management firms, valued at roughly $17 billion to $18 billion, after alleged manipulation of prices in low-volume shares left certain funds unable to honor withdrawal demands. More than 450,000 investors are reported to hold stakes in the affected funds.¹²⁵⁸

Turkey's justice minister disclosed that assets belonging to 46 companies, 18 funds and 42 individuals had been frozen, with 37 suspects barred from travel, though officials later rescinded the broad freeze order, Middle East Eye and Euronews reported. At least 45 people have been arrested, including Tera Group chairman Emre Tezmen, held on Ponzi-like scheme charges, and Pusula Portfolio chairman Muhammed Yariz.¹²

Repayment and regulatory response

Ekonomim reported that Fatma Betul Sayan Kaya and Ilyas Kaya transferred roughly 2.2 billion lira to an account designated by the Treasury and Finance Ministry on 29 September. Under rules cited by the Capital Markets Board, individuals facing criminal complaints can benefit from effective-remorse provisions if they repay twice the amount of the benefit obtained within 15 days.⁸

The Capital Markets Board, which had already tightened rules on 28 August, extended the maximum liquidation period for the affected funds from three to six months, and clarified that cancelled transaction orders would be paid from the liquidation balance according to each investor's proportional stake.²⁸¹

Political stakes

Middle East Eye cited speculation implicating additional high-ranking figures, pointing out that a top adviser to Erdogan had served on Tera Portfolio Management's board through January 2026; Tera and the other companies named have rejected any wrongdoing. An unnamed Ankara insider was quoted saying: "Erdogan will have to genuinely go after this to show that he doesn't forgive such transgressions, because the political cost could be worse than people imagine."¹

Erdogan addressed the controversy on 29 September, saying: "Whoever lays a hand on the nation's rights, assets or legal interests will face us and the state," and he was due to chair a committee meeting on next steps. Turkish stocks fell 2.38 percent the same day, according to Middle East Eye.¹