Turkey’s ruling Justice and Development Party (AKP) has reintroduced a contentious proposal allowing the Savings Deposit Insurance Fund (TMSF) to be appointed as trustees for companies under investigation, the Ekonomim news website reported on Tuesday.
The measure, previously dropped from the 9th Judicial Reform Package following opposition pushback, has been revived as part of a new omnibus bill submitted to parliament.
The legislation, which opposition parties have criticized as unconstitutional, allows the TMSF to take control of companies based on a “strong suspicion” of crimes such as money laundering or financing terrorism. Critics argue this undermines due process and opens the door to abuse.
Under the proposal, courts would be authorized to appoint the TMSF as trustee for up to five years in cases where companies are suspected of involvement in financial crimes. During this period, the TMSF would have wide-ranging authority, including making decisions on company operations, selling assets or liquidating businesses without consulting minority shareholders.
The Turkish Commercial Code would not apply to these decisions, further limiting oversight.
The bill also allows the TMSF to manage and eventually dispose of confiscated company assets, with proceeds held in an interest-bearing account until the legal process concludes. If the company’s assets are permanently confiscated, the TMSF would oversee their sale or liquidation.
The AKP defends the proposal as a necessary tool to combat financial crimes effectively, emphasizing that it targets companies suspected of laundering criminal proceeds or financing terrorism.
Opposition lawmakers have criticized the measure as dangerous overreach, arguing that it weakens property rights and investor confidence while creating a tool for potential political interference in the private sector. They previously forced the removal of the provision from the 9th Judicial Reform Package, citing similar concerns.
Journalist İbrahim Ekinci, writing for the Kısa Dalga news website, criticized the proposal on X.
“They are opening a new channel for ‘seizing.’ This law would hand over extraordinary power to an authority that can easily label half the country as terrorists,” he tweeted.
The omnibus bill, which includes other measures such as pension increases, is currently under committee review in parliament. Debate is expected to intensify in the coming weeks as opposition parties scrutinize the revived proposal.
The legislation comes amid a broader history of government seizures of private companies, particularly following a coup attempt in 2016.
Ankara accuses the Gülen movement, a faith-based group invested in education and the provision of humanitarian assistance throughout the world and inspired by the late Muslim cleric Fethullah Gülen, of masterminding a failed coup in July 2016. The movement strongly denies any involvement.
Following the failed coup, the AKP government launched a massive purge targeting real and alleged members of the movement under the pretext of an anti-coup fight, removing over 130,000 people from civil service jobs.
The AKP had designated the group as a terrorist organization before the coup and seized schools, universities, media outlets, companies and their buildings and the assets of individuals, corporations and organizations that were believed to have had ties to the movement.
More than 1,100 companies have been transferred to the TMSF, most of them following the failed coup.
