Is the Wealth Fund a Poverty Fund?

The Turkey Wealth Fund (TVF) was established in 2016 under Law No. 6741. The purpose of the Fund is to contribute to the diversity and depth of capital market instruments, to bring publicly owned assets into the economy, to secure external financing, and to regulate the principles regarding the establishment, management, and operations of the Turkey Wealth Fund Management Joint Stock Company (the Company), which was created to manage the Turkey Wealth Fund and its sub-funds to participate in strategic, large-scale investments.

As of 2024, its economic size has reached 913.6 billion TL. It possesses an asset portfolio consisting of 30 companies from 7 different sectors, 2 licenses, and real estate. The Fund has consolidated many state-owned economic enterprises, the vast majority of which operate in sectors such as financial services, transportation and logistics, technology and telecommunications, and energy. Furthermore, all of the companies transferred to the Wealth Fund are profitable, high-profile public companies.

While sovereign wealth funds operating globally have goals such as protecting economic growth and national prosperity for future generations, ensuring fiscal stability through macroeconomic policies, and supporting economic development, it is understood that the Turkey Wealth Fund lacks such objectives. It is questionable whether it is managed according to professional management principles as stated in the Turkey Wealth Fund Law. At the same time, as we approach the end of 2024, the fact that even the 2023 Annual Report of the Turkey Wealth Fund has not yet been disclosed to the public shows that the Fund is not fully transparent.

In accordance with the Presidential Decree published in the Official Gazette dated August 20, 2024, all shares belonging to the Treasury in 12 companies, including Koza Altın İşletmeleri Anonim Şirketi, were transferred to the Turkey Wealth Fund.

One must ask here: these profitable public companies that were transferred to the Wealth Fund began to incur losses after their transfer. We will see together in the coming years whether the Wealth Fund will cover its losses with this transfer and whether this will result in artificial or healthy growth.

The list of the 12 companies whose shares will be transferred to the TVF is as follows:

Koza-İpek Holding Anonim Şirketi

İpek Doğal Enerji Kaynakları Araştırma ve Üretim Anonim Şirketi

Koza Anadolu Metal Madencilik İşletmeleri Anonim Şirketi

ATP İnşaat ve Ticaret Anonim Şirketi

ATP Havacılık Ticaret Anonim Şirketi

ATP Koza Turizm Seyahat ve Ticaret Anonim Şirketi

REK-TUR Reklam Pazarlama ve Ticaret Limited Şirketi

Koza Prodüksiyon ve Ticaret Anonim Şirketi

Ipek Online Bilişim Hizmetleri Limited Şirketi

Koza Altın İşletmeleri Anonim Şirketi

Özdemir Antimuan Madenleri Anonim Şirketi

Koza Ipek Tedarik Danışmanlık ve Araç Kiralama Ticaret Anonim Şirketi

These companies are FETÖ-affiliated entities and had been under the management of trustees until today. In other words, while the property rights of the shareholders were protected, the management of the companies was in the hands of individuals appointed by the state. As of today, the ownership rights of the former owners of these companies have been terminated, and the new owner of the companies is the Turkey Wealth Fund.

Although the action taken may look like the nationalization of companies belonging to FETÖ gangs, it should not be forgotten that this is also an interference with property rights. We hope that this action does not return to our people as a compensation burden. If it does, will the public pay the price for these nationalized or seized companies?