Turkish cabinet's move to transfer top public firms to wealth fund stirs strong criticism

The government's decision to transfer stakes in the country's top public companies to a newly launched sovereign wealth fund has stirred strong criticism from opposition deputies and economists as the fund will beyond the remit of monitoring. 

Turkey transferred its stakes in Ziraat Bank, the Borsa Istanbul stock exchange, Turkish Airlines and state-owned pipeline operator BOTAŞ, among many others, to a new sovereign wealth fund, in a bid to help finance giant infrastructure projects, through two separate statements on Feb. 5-6. 

Selin Sayek Böke, the Republican People's Party's (CHP) spokesperson and vice chair responsible for economic policy, said on Twitter on Feb. 5 that the move would drive the Turkish economy toward a steep cliff through the creation of a "parallel" treasury. 

She also noted that the state's companies would be used as collateral. 

Turgay Bozoğlu, the economy adviser to CHP leader Kemal Kılıçdaroğlu, said the fund's audit-free structure would create big risks for the economy. 

Such funds are established by energy-rich countries or economies with high foreign trade surpluses, but Turkey is not a member of any of those groups. 

"Although Turkey is not one of the aforementioned groups, this fund was established in a bid to detach some key budget revenues out of the budget and public control. This will only lead to new financing opportunities for some pro-government businesses … mainly in big infrastructure projects," he said, according to Doğan News Agency. 

Like establishment of 'Düyun-u Umumiye'

Bozoğlu also likened the move to the establishment of the Düyun-u Umumiye (Council of Ottoman Revenues and Debts Administration) in 1874, adding that Turkey's...