97 billion transferred to 'Non-Profit Organizations': Revealed in TEPAV report

Hikmet Eren Çelenk / 12punto.com.tr

The 'Evaluation Report on the Second Quarter 2024 Central Government Budget Results' published by the Economic Policy Research Foundation of Turkey (TEPAV) has revealed an unusual rise in expenditures.

The report highlighted that 'Transfers to Non-Profit Organizations' increased by 437.9 percent compared to last year, reaching 97.913 billion.

Hakkı Hakan Yılmaz, a TEPAV official reached by 12punto for expenditure details, stated: “While 18.2 billion was spent in the same period last year, approximately 98 billion has been spent in the same period now. There is a 437 percent increase. This is a significant increase. Its contribution to the total increase was 3.6. You know, fiscal adjustment measures were announced, but these are very intention-based. There is a sincerity problem. Something is intended to be done, but there are internal resistances and habits. This transfer item is essentially a resource transferred to institutions and individuals outside the budget item.”

MONEY FLOWED TO ASSOCIATIONS AND FOUNDATIONS

Retired academic Hakkı Hakan Yılmaz, who prepared the report, said that they compiled the budget from the Ministry of Treasury and Finance's General Directorate of Public Accounts page and that they established this institutional structure with reforms in the early 2000s.

In the expenditure details shown in the report, it was recorded that 2.2 billion was transferred to the Maarif Foundation, 1.8 billion to various associations, and 5.9 billion to the European Union Education and Youth Sports program. According to the report, it was stated that 77 billion liras were transferred to various institutions in the first six months.

‘NO MATTER HOW YOU LOOK AT IT, IT IS A LARGE SUM’

Another major expenditure item highlighted in the TEPAV report was identified as funds transferred to institutions under the name of 'Disaster Risk Transformation Expenses'. A payment of 76.8 billion was made to these institutions.

When we asked Hakan Yılmaz whether it is normal for the state to transfer such a large amount of money to non-profit organizations while the money raised by aid campaigns is evident, he replied: “Actually, over 1 trillion is being spent. I don't know for what purpose this is given, spent, or what the expectations are. There seem to be organizations that are not public institutions or are semi-public institutions. AFAD knows this. However, I don't know what such a periodic increase covers and to what extent. It mentions the transformation risk of Disaster Risk areas. The budget is likely managed under AFAD. It might be transferred through AFAD. No appropriation detail has been provided, but no matter how you look at it, it is a large sum.”

‘WHERE IS THE 26 BILLION?’

Debris removal work began in the second month of the earthquake, and repair work began in the second half of 2023. It was announced that financial investments and aid actively began during this period. DSI 20th Regional Director Kazım Doğru had said in an interview with Anadolu Agency in the second month of the earthquake that 50 percent of the debris had been removed.

When we asked Hakan Yılmaz how AFAD manages such amounts of money, who audits them, and why such an increase decision was taken in 2024 when there was no such increase in the budget in the second half of 2023, he said the following:

“According to the March report, 30-35 percent of the donations within the scope of 'Turkey, We Are Enough for Each Other' (Biz Bize Yeteriz Türkiyem) could still not be used. We touched upon this in the 2024 first-quarter report, and it seemed very interesting to me for two reasons. First, why don't we track the money flow in a special account within the budget? There is a transparency problem. Parliament and the public need to be informed about this. Second, a year and a half has passed since the earthquake, and there is still money you cannot use. Last year there was a disaster impact, and the money spent until the end of the year appears as 7.5 billion. A serious amount of money has not been spent. 79 billion was spent in the first six months of this year. 6.2 billion was spent in the first six months of 2023. It might be transferred to projects of an urban transformation nature, but rather than projects, it is transferred to individuals and institutions. We had also stated this in our 2024 first-quarter report, and it must be linked to the budget. Why is a separate account kept in a special place? I think it is a critical thing; a year has passed since the donation aid, and you still haven't been able to use about 50 billion. There is nearly 140 billion currently in the AFAD account. As of August 15, 113 billion has been used. Despite a year and a half passing since the earthquake, there is still a high amount of cash that has not been used.”

‘I WAS STUNNED!’

Hakan Yılmaz concluded his words as follows:

“These revenues and expenditures need to be explained in a way that is open to parliament and the public by establishing their relationship with budget accounts. This is the money the citizen entrusted to you. The budget is a right of sovereignty. In the exercise of the right of sovereignty, the executive must be accountable to parliament and the public. You must explain to me in detail where you spend the money. I am a citizen, and you must explain to me in detail why you did not use the money transferred for aid. When it is not linked to the budget, it can create hesitation in financial statements. There must be transparency and accountability in the budget. Budget details must be accessible to everyone. When I saw the AFAD expenditure details, I was stunned. I was at the State Planning Organization during the 1999 earthquake. We established separate systems for these, we linked them to the budget. We had designed a monitoring system under control. Today, even if that system's technology is new, it is managed with an old-fashioned method. Almost everyone knows that the initiatives of managers in central government expenditures are quite important, but I am also a citizen. It is my right to know where my money goes. I do not want to cast suspicion on any institution or organization. It is the wish of all of us that the transferred resources have reached our victimized citizens directly, but there are some questions I want to ask.”

AFAD HUNG UP THE PHONE

The 12punto team, evaluating the possibility that the AFAD Budget Commission carries out the revenues obtained from donations through a calendar, spent intensive effort to reach AFAD officials.

As a result of the switchboard number affiliated with AFAD not accepting our calls for two days, and the only official we reached hanging up the phone the moment we mentioned the report, we could not get a return from any official.