Allegations of corruption surround Turkish President’s son
QAMISHLI, Syria (North Press) – A complaint has been filed with anti-corruption authorities in the US and Sweden, claiming that the Swedish branch of a US company promised to pay large sums of money in kickbacks in exchange for assistance from Turkish President Recep Tayyip Erdogan’s son in securing a leading market position in Turkey, Reuters reported.
The kickbacks amounted to tens of millions of dollars, according to a detailed report by Reuters, citing communications and business documents, as well as by a person familiar with the matter.
However, no kickbacks were paid, according to the complaint submitted to authorities by an individual and reviewed by Reuters.
Reuters is reporting this plan and the resulting preliminary probes for the first time.
Dignita Systems AB, a Swedish technology company, abandoned the project late last year, according to two people familiar with the matter and company communications seen by Reuters.
Dignita set foot in Turkey in 2017 with the ambition of selling its traffic-safety devices.
Dignita’s US owner confirmed to Reuters that the project was canceled, saying it had learned of “potentially concerning conduct” in Turkey and terminated several people involved.
The company’s plan, according to the complaint, was for the administration of President Erdogan to pass regulations that would boost sales of Dignita’s product.
As per the complaint, Dignita’s strategy was to have the Erdogan administration implement regulations that would enhance the sales of their product.
According to the complaint, in exchange for a 10-year commercial monopoly on the sales of its products, Dignita pledged to pay tens of millions of dollars in lobbying fees, via a shell company, to two institutions where Bilal Erdogan serves as a board member.
Bilal Erdogan’s lawyer said allegations that he colluded with Dignita “are completely incorrect.” It is a “web of lies,” the lawyer added.
Bilal Erdogan, who is not often seen in public, is a 42-year-old businessman, and like other members of the Erdogan family, holds minority stakes in BMZ Group, a company involved in maritime transport and construction.
Bilal Erdogan has been linked to allegations of corruption in the past. In 2016, he was investigated by Italian prosecutors on suspicion of money laundering, as they believed he had brought large sums of cash into the country without declaring it. However, he denied any wrongdoing, and the Italian prosecutors eventually closed the investigation due to insufficient evidence.
In the year prior, Russia claimed to have evidence that he was making profits from the oil trade with the Islamic State (ISIS) in Syria. However, Russia refused to share the evidence they had. Bilal Erdogan denied the accusations and stated that Turkey sees the radical insurgency as an enemy.