Turkish Finance Minister Mehmet Şimşek on Wednesday authorized prosecutors to investigate the former head of Turkey’s capital markets regulator, the state-run Anadolu news agency reported.
Turkey has been grappling with the fallout from an investment fund scandal that erupted a month ago, prompting an investigation into allegations of widespread market manipulation.
Şimşek’s approval came two weeks after prosecutors requested permission to investigate İbrahim Ömer Gönül, who chaired the Capital Markets Board (SPK) for four years until his term ended in April.
In their letter to the ministry, prosecutors said there were “clear and sufficient indications” that Gönül had failed to fulfill his responsibilities while in office.
The scandal has put pressure on President Recep Tayyip Erdoğan’s ruling Justice and Development Party (AKP), with one senior party official resigning following allegations about her investment activities.
The crisis erupted when several funds were unable to meet investors’ redemption requests.
The SPK swiftly placed seven companies managing 131 investment funds, with assets reportedly worth some $17 billion, into liquidation.
More than 455,000 individual investors have been affected, according to the regulator.
© Agence France-Presse
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