Business marries politics, again: are Erdogan-allied businesses getting away with more?

The Turkish government has created an elite class of businesses that enjoy unfair advantages over their rivals despite being allegedly being involved in corruption, as well as negligence causing fatal accidents, observers argue.

Opposition figures underline that the government is turning a blind eye to misconduct by businesspeople loyal to President Recep Tayyip Erdoğan while it is pressuring firms critical of Erdoğan through such methods as tax fines.

The Justice and Development Party (AK Party) government is also accused of providing a protective shield for these companies before the law for recent public misdeeds or mistakes.

The discussion came under the spotlight in the wake of the fatal accident involving Torunlar Construction after an elevator carrying 10 workers plunged to the ground from the 32nd floor, causing the deaths of the workers during the construction of a luxury high-rise residence complex.

As many experts indicated just after the incident, this should not be regarded as an accident as negligence is considered to be the major cause. There are many claims that it was a foreseen tragedy because the elevators had been giving signs of breaking down for the past month, but workers were still forced to use them -- over the elevators' capacity. 

According to several experts, who previously spoke with Today's Zaman, the main reason behind these kinds of workplace tragedies is the motivation of companies to earn more money and increase profits by turning a blind eye to legally required safety measures in the construction sector. 

Torunlar Construction, owned by Aziz Torun, grew and increased its profits – as did many other companies -- during the AK Party's 12 years in rule through multi-construction projects. In addition, Ali Coşkun, the former trade and industry minister during previous AK Party governments, also sat for many years on the company's board of management. 

Torun is a close friend of President Erdoğan dating back to when they were classmates at İstanbul İmam-Hatip High School, which provides religious education based on Islam. His company was categorized as a middle-sized firm in the 1990s, but after the AK Party came to power in 2002 the firm's construction projects gained momentum as it constructed many shopping malls in İstanbul and in other provinces of Turkey. The company built the Antalya Deepo Outlet Center in 2004 and it became a partner in the Netsel Marina Marmaris as a 44.6 percent shareholder in the business. 

But Torunlar Construction made its major breakthrough when it bought a piece of land seized by the Turkey's Savings Deposit Insurance Fund (TMSF), which previously belonged to the Turkish mobile telecommunications company Telsim.

The main opposition Republican People's Party (CHP) criticized the move saying that companies and land seized by the body are used to serve the interests of the AK Party governments. CHP İstanbul deputy Gürsel Tekin complained about the issue in June by saying that the TMSF-seized companies have turned into the government's backyard. 

What made the process questionable was the cancellation of the first tender won by businessman Hüsnü Özyeğin, who has large investments in the energy and retail sectors, and that Torunlar Construction won in a second tender. 

The site where Torunlar Construction is building a 44-storey skyscraper, called Torun Center, was the former site of Galatasaray football club's Ali Sami Yen Stadium. The company also won Ankara's state gas provider Başkentgaz tender by paying $1.16 billion.

Like Torunlar Construction, Soma Holding, a company that was operating the Soma coal mine in which 301 miners lost their lives in May, is considered a firm that has grown fast during the AK Party rule. Many believe the AK Party government, under which Turkey has seen rapid economic development with work safety legislation failing to catch up, also has a responsibility in the devastating accident due to its strong support for the company.

Turkey's Savings Deposit Insurance Fund's (TMSF) decision to pass a post-disaster cautionary judgment on all the assets of Soma Holding owner Alp Gürkan was hastily lifted, supporting the thought that pro-government companies are systematically kept out of legal processes despite their mistakes.

Similar criticisms have also been expressed regarding Ali Ağaoğlu, a construction mogul known for his close ties with Erdoğan and mega-construction projects in İstanbul. Despite the fact that a worker died at the Maslak 1453 construction site, which belongs to Ağaoğlu, no legal process was launched against him. Ağaoğlu was also implicated in a corruption investigation that went public in December of last year.

CHP İstanbul deputy and former Chief Treasury Inspector Aykut Erdoğdu told Today's Zaman that many companies that have come under the spotlight due to recent fatal accidents in their projects have been mentioned in Court of Accounts reports due to their misconduct and errors. "If the findings of the institution's reports had been taken into consideration when the reports were drawn up, today's disastrous incidents could have largely been prevented."

"In January 2013, eight coal miners were killed at the Kozlu coal mine in Zonguldak. However, the contents of a 2012 Court of Accounts audit report by inspectors on the mine, operated by Star Construction, discovered 35 violations. If the necessary legal measures were taken in accordance with the report's findings against the company, then the disaster would have not occurred. All companies that are involved in such tragedies are recorded in the minutes as 'questionable firms',” Erdoğdu noted.

Arguing that these companies have been provided certain privileges before the law and legal processes, Erdoğdu added: "According to the laws regulating the labor market, the employer is the main party responsible for any kind of accident that happens as part of their projects. But what we have seen are the detentions of several poor workers following such workplace accidents. Innocent workers have died so AK Party-supported companies can make more profits. In addition, these companies' negligence and mistakes are covered up before a court process [takes place]."

Firms that don't share AK Party ideals intimidated

A seasoned journalist who wished to remain anonymous spoke to Today's Zaman regarding businesspeople who have substantially increased their profits with the support of the AK Party administration over the past decade. Apparently, a mechanism based on mutual interests between the ruling party and businesspeople governs the business world. 

"I closely know most of these businessmen. They transfer money or land as 'funds' for certain projects initiated by the political administration. Soma Holding, Torunlar Construction and Ağaoğlu Company, like many others, are considered among the first-class companies when state-backed projects are distributed. But the owners of these companies do not embrace a worldview similar to the members of the government nor do they pay mind to public interest. They only focus on maximizing their revenues. That's why these firms have deadly accidents: because they do not care about workers' or workplace safety. And if any company is not part of this mechanism, which funnels funds as directed by the government, then laws are suddenly enacted and they are punished by the system by being excluded from operating in any business sector. This is called nepotism," the journalist emphasized.

CHP Deputy Chairman Faik Öztrak, who is in charge of the economy, complained about the growth model imposed by the AK Party government, saying: "This type of growth is killing both people and nature while elevating [the income of] some businesspeople. It does not include any competitive power. It is based on favoritism. Some businesspeople are given a shield by the government that prevents any legal process from being launched into them. We experience a large scale of thievery by specific companies and the government. This model does not aim for production at the first stage."

Çetin Gürel, a founding chairman of the Gözlem daily who writes about the economy, pointed out that the mistakes and misconduct of these companies have been systematically covered up, blocking the laws from being applied in the face of negligence, adding, "If the Turkish economy is still not improving or functioning well, the government's protection of these companies has a significant role in the matter."