A former Turkish minister and senior official of President Recep Tayyip Erdogan’s ruling party, Fatma Betul Sayan Kaya, has been remanded in custody over an investigation into a multi-billion-dollar investment fund scandal.
Kaya was detained after an Istanbul court ordered her remand pending trial on charges of violating capital markets law and belonging to an organisation allegedly established to commit crimes.
State news agency Anadolu reported that the charges form part of a wider investigation into alleged financial misconduct and market manipulation.
Kaya previously served as Turkey’s family minister and was until recently a deputy chair of Erdogan’s ruling Justice and Development Party (AKP).
She stepped down from the party position two months ago following allegations by the main opposition Yeni Party that she and her husband made substantial profits through suspicious investment transactions.
A Yeni lawmaker had called for clarification over claims that the couple made millions from share transactions before the investment scandal became public, raising concerns about possible insider trading.
The scandal, which emerged in mid-September, has triggered a major investigation into alleged widespread market manipulation involving the savings of nearly half a million investors.
Turkey’s Justice Minister, Akin Gurlek, said 112 people had been remanded in custody pending trial in connection with the crisis.
He said investigators had uncovered a “comprehensive criminal network” that had infiltrated the highest levels of Turkey’s financial markets.
Authorities are continuing investigations into the alleged financial crimes, which have shaken confidence in the country’s investment market.
