Another tender from the AKP government to Cengiz Holding: Awarded at 28 times below market value!

Tenders continue to pour into companies known for their closeness to the government.

Cengiz Holding, which has added to its wealth with the tenders it has received from the AKP government, has added a new one to these tenders.

CHP Deputy Chairman Deniz Yavuzyılmaz stated that the tender for establishing a copper mining facility in the Boyabat district of Sinop, which will take place on October 15, will be awarded to Cengiz Holding. 

Drawing attention to the fact that the market value of the copper to be produced is 100 billion TL while the tender price is 3.5 billion TL, Yavuzyılmaz pointed to the 28-fold difference between the two.

On the other hand, Yavuzyılmaz stated that if the tender is held under these conditions, the share that the General Directorate of Mineral Research and Exploration (MTA) will receive from the company's annual turnover is 1 percent, whereas if the tender were made open to competition, the state's share of the turnover would be 25 percent.

“THE TENDERS HELD PROVIDE CENGİZ HOLDİNG WITH A MASSIVE ADVANTAGE”

Deniz Yavuzyılmaz said the following:

"We have determined that the AKP is about to hand over the Sinop Boyabat Copper Mining Site to Cengiz Holding with a tailor-made tender. The date of the tender is October 15. According to the tender specifications and our calculations, the market value of the copper to be produced at the Boyabat Copper Mining Site is 100 billion liras. However, the price of the tailor-made tender, which is far from competition, is 3.5 billion liras. The difference is 28 times.

According to the smelting facility requirement in the specifications, there is only one company in Turkey that meets this condition; that is Cengiz Holding. Cengiz Holding took over the facility that provides copper production in Turkey from the state through privatization in 2004 for a very small amount, 33 million dollars; as of today, if another company wanted to establish the same facility, it would need an amount like 300 million dollars.

Tenders held in this way provide Cengiz Holding with a massive advantage. It practically collects copper mining sites through tenders held in this way. It can take them by entering the tender directly, or when it wants to hide itself, it can do so through another company."

“EVEN IF COMPETITION DOES NOT ARISE, THE TENDER IS STILL GIVEN TO THIS COMPANY”

Yavuzyılmaz said that in the tender held in the Maden district of Elazığ, a different company entered the tender, but because the specifications were arranged accordingly, a Cengiz Holding board member was taken on as a partner three days before the tender. Expressing that monopolization and public loss have occurred, Yavuzyılmaz continued his statements as follows:

"Just like in the tender for the copper site in the Maden district of Elazığ in 2021, there was also a smelting facility requirement there. Here, too, it was taken by a company called Port Madencilik, which was also established in 2021 and belongs to Halil İbrahim Bacacı, who also received the Sürat Kargo tender from the Savings Deposit Insurance Fund (TMSF).

According to the Trade Registry Gazette dated April 19, 2022, Port Madencilik took on Şeref Cengiz, a board member of Cengiz Holding, as a partner just three days before the tender. Then, after a while, it transferred the shares of Port Madencilik to Şeref Cengiz.

The same situation is currently being experienced in the tender process for the Boyabat Copper Mining Site. Since Cengiz Holding is the only company in Turkey with a smelting facility, it becomes the direct winner of these tenders by effectively eliminating competitor companies that would be forced to make an additional investment of approximately 300 million dollars to establish a new smelting facility.

On the other hand, according to the specifications, even if only one company participates in the tender, that is, even if competition does not arise, the tender for the mining site is still given to this company. If the tender is held under these conditions, the share that the MTA will receive from the annual turnover is defined as 1 percent. However, if the tender is made open to competition and held through an open auction method for the state share, the state's share of the annual turnover can rise up to 25 percent.

“WE WILL CONTINUE OUR INITIATIVES REGARDING THIS ISSUE”

For this reason, this tender to be held on October 15 must either be cancelled or its conditions must be changed to eliminate public loss or loss of public revenue. We will continue our initiatives regarding this issue.

In tenders held with a smelting requirement, Cengiz Holding has been made into a natural monopoly by the AKP. For this reason, Cengiz Holding is in such an advantageous position that it can either enter and win these tenders alone, or it makes a plan to have another company win the tender and then take over this tender site from that company.

A similar process occurred regarding the tender concerning the copper mining site in the Maden district of Elazığ, which our Chairman Özgür Özel mentioned on the podium today. We have also determined that there is no provision restricting the company that wins the tender from transferring it in the current Sinop Boyabat Copper Mining Site tender."