A Turkish state body’s takeover of companies tied to jailed İstanbul Mayor Ekrem İmamoğlu marks a new phase in the use of trusteeships to target political rivals, Turkish minute reported, citing a report by Solidarity With OTHERS.
The 30-page report, published in May, examines how the Savings Deposit Insurance Fund (TMSF) was appointed as trustee to 24 companies following İmamoğlu’s detention on March 19 on corruption and terrorism-related charges.
The mayor was later arrested on March 23 on charges of corruption and was suspended from office pending trial.
The TMSF then used a criminal procedure law as grounds for appointing trustees to İmamoğlu-linked companies.
Among the firms was İmamoğlu Construction Inc., the family business of the İstanbul mayor, the main political rival of President Recep Tayyip Erdoğan who was named the opposition’s presidential candidate after his arrest.
The report argues that the mass seizure of companies in the İmamoğlu case marks a shift from targeting entities affiliated with the Gülen movement to dismantling the financial base of secular opposition figures.
The Gülen movement, inspired by the views of the late Turkish-Islamic scholar Fethullah Gülen, is accused by the Turkish government of masterminding a failed coup in July 2016. Gülen, who died in the US in October, strongly denied having any role in the failed putsch.
Over the last decade Gülen and his movement, which in the past had been praised by the Turkish government for their activities in education and inter-religious and intercultural dialogue, have faced various accusations from the government, including masterminding corruption investigations in 2013 and the coup attempt in 2016.
The Turkish government labeled Gülen and his movement “terrorists” in May 2016.
Gülen and his followers have strongly denied any involvement in the coup or any terrorist activity but have been the subject of a harsh crackdown for a decade, which intensified in the aftermath of the abortive putsch.
Since the coup attempt, more than 700,000 people have been investigated on terrorism or coup-related charges due to their alleged links to the movement and thousands were arrested.
The Turkish government has been appointing trustees to businesses with perceived links to the Gülen movement since 2015.
A report last year titled “Persecutory Confiscation Amounting to Crimes Against Humanity: Case of the Gülen Group” exposed the vast scale of property confiscations in Turkey targeting the movement, with an estimated value of $50 billion and affecting over 1.5 million people in what the authors call systematic and widespread violations of domestic and international law that amount to “crimes against humanity.”
Solidarity With OTHERS, a Brussels-based rights group, warned that the mechanisms used against İmamoğlu — criminal investigations, politicized courts and asset confiscations — have become normalized tools of repression.
The report outlines how Turkey’s judicial system, especially the Criminal Courts of Peace, plays a central role in approving seizures with little oversight.
It documents how court orders relied on generic justifications and copy-pasted language, including unrelated allegations like illegal betting, to authorize the transfer of company control to the state.
The decision appointing the TMSF to manage the 24 companies, the report notes, was only four pages long and included factual errors such as listing individuals not involved in the case.
Hasan İmamoğlu, the mayor’s father and founder of the family business, said the takeover left him unable to pay taxes or access company assets.
The TMSF, initially designed to regulate failed banks, has acted as trustee for over 1,300 companies since 2016, many accused of links to terrorism without solid evidence, the report said.
The value of companies under TMSF trusteeship had dropped from $13.4 billion in 2016 to $5.2 billion by 2023, a 62 percent decline attributed to mismanagement and undervalued sales.
Watchdogs say trustees appointed by the TMSF often lack expertise and have political ties, with some managing over 100 companies at once.
Funds from seized firms have been funneled to pro-government foundations, according to the report.
In some cases, companies were sold far below market value.
The report highlights how legislative amendments granted trustees full immunity from financial and criminal liability, enabling what it describes as “looting.”
It further notes that seized firms are being transferred to the Turkey Wealth Fund, chaired by Erdoğan, making them strategic assets under direct executive control.
“The İmamoğlu case marks a turning point, indicating that this process is no longer limited to certain opponents but can now target everyone,” the report says, adding that this shows “a new era has emerged in Turkey, where all forms of opposition can be subjected to economic and legal pressure.”
