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Former trade minister case: Overpriced disinfectants and political ties in Turkey

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  • Turkey

Former trade minister case: Overpriced disinfectants and political ties in Turkey

Case Date(s)
04/2021
Case Updated
04/2021

Case Summary

Phase

Suspicion

Institution

  • Ministry of Trade

Involved people

Allegedly involved people Ruhsar Pekcan Minister of trade
Ruhsar Pekcan
Politically exposed
Yes
  • Abuse of functions
Allegedly involved people Hasan Pekcan Owner of the company from which the disinfectant was purchased
Hasan Pekcan
Politically exposed
Yes

In April 2021, allegations emerged that two companies owned by the family of the then Turkish minister of trade, Ruhsar Pekcan, sold disinfectants and other medical supplies to the ministry, drawing public criticism for apparent conflict of interest. In response to allegations surrounding this case, Turkish President Erdogan dismissed Pekcan from her position, however without providing official reason for this decision.

In April 2021, it was alleged that two companies owned by the family of the former Turkish minister of trade, Ruhsar Pekcan, sold disinfectants and other medical supplies to the ministry, drawing public criticism for apparent conflict of interest. In response to this controversial case, Turkish President Erdogan dismissed Pekcan from her position, however without providing an official reason for this decision.

The Ministry of Trade confirmed these purchases but stated that the products were bought from these companies due to their low price and urgency because of the pandemic, in an apparent attempt to justify the purchases. Some media alleged that the ministry purchased TRY9 million (app. €926,000 in April 2021) worth of protective equipment from Nanoksia Biotechnology. However, the ministry refuted these claims and announced that the value of these purchases was €51,000 and that they were conducted in line with the relevant laws and regulations.

Media outlets also claimed that Pekcan’s company Nanoksia Biotechnology sold disinfectants to the government at 75% above the market price.

Following the emergence of these allegations, it was also claimed that Nanoksia Biotechnology received state aid amounting to TRY1.4 million (app. €155,000 in April 2021), which was a quarter of state funds intended for small and medium businesses producing personal protective equipment.

Three separate parliamentary motions were filed calling for an investigation into the trade ministry regarding the purchases of thousands of litres of disinfectants from Pekcan related companies, but the ruling Justice and Development Party (AKP) and its junior coalition partner, the Nationalist Movement Party (MHP), voted them down. The opposition Republican People’s Party (CHP) filed an investigation proposal to the presidency of the grand national assembly requesting a parliamentary investigation into the former trade minister Ruhsar Pekcan. On 22 April 2021, the People’s Liberation party (HKP) filed a criminal complaint with the Ankara chief public prosecutor’s office against former trade minister Pekcan in relation to this case, alleging that she committed abuse of office and some other corruption-related offences.

However, there have been no developments from the prosecution on the matter. Nevertheless, this case suggests potential risks of conflict of interest, alleged political favouritism in the allocation of public funds, as well as potential misuse of public funds through overpayment to politically connected firms.

Further details

UNCOVERING METHOD

Investigative journalism: in April 2021, Can Özçelik, a journalist, made public the documents showing that former minister of trade, Ruhsar Pekcan, and her husband, Hasan Pekcan, owned two disinfectant manufacturing companies and that the disinfectant produced through these companies was sold to the Ministry of Trade.

Media and public opinion: with the emergence of the documents, there was a lot of media coverage of the case.

PROSECUTOR

name here

SOCIAL HARM ON SDGs

8 Decent work and economic growth

16 Peace, justice and strong institutions

The media reported that companies owned by the former minister of trade, Ruhsar Pekcan, and her husband sold disinfectants to the Ministry of Trade amounting to TRY9 million (app. €926,000 in April 2021). The Ministry of Trade admitted the purchase but refuted the claims about the amount, stating that it purchased disinfectants and protective equipment from these firms amounting to €51,000. The official investigation into this case has not been launched, but the minister Pekcan was dismissed by presidential decree after the news became public. The case raises concerns about potential risks of conflict of interest, possible political favouritism and alleged embezzlement of public funds.

Disclaimer

Every effort has been made to verify the accuracy of the information contained in this database. All information is believed to be correct as of 04/2021. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts.

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