Real estate sales to OYAK caused major financial losses to state

OYAK headquarters (Photo: AA)

July 15, 2012, Sunday/ 16:48:00

A report prepared by Finance Ministry inspectors has revealed that real estate properties which were sold below their value to Turkey's huge, military-run economic enterprise, the Turkish Armed Forces Assistance Center (OYAK), caused major financial losses to the Treasury.

Twelve inspectors, who were commissioned by the Parliament Petition Commission following a significant number of complaints about OYAK, presented a report to Parliament on how the sale of real estate to OYAK resulted in financial losses to the state budget and large illegal profits for the company.

According to the complaints, OYAK is involved in commercial activities which are against commercial law and victimizes some of its members.

OYAK, originally established by military officers who had overthrown the government on May 27, 1960 with a view to providing additional income for members of the Turkish Armed Forces (TSK), has now become one of the largest conglomerates in the country.

According to the report, OYAK, which paid TL 3,000 per square meter for land it purchased in 1987, demanded TL 505,000 per square meter for the same piece of land in 1992.

A piece of land without a zoning permit which was given to OYAK in Çankaya, a prestigious neighborhood of Ankara, in a short time a total of 2,663 residences had been constructed, each of which was sold for TL 300,000, the report revealed. It also noted that 20 residences were allocated for the Finance Ministry from this housing complex, named Zirvekent, in Ankara, placing the ministry at the center of criticisms.

OYAK's decision to rent out a 12-decare piece of land in Çorlu, which was meant to be a memorial area for martyrs, to a supermarket also made its way into the report. OYAK rented the land from the Defense Ministry in exchange for 0.3 percent of its annual turnover but it rented the land to the supermarket in exchange for 2.5 percent of the supermarket's annual turnover, making an unlawful 2.2 percent profit.

OYAK has 60 subsidiaries from various sectors and controls many profitable companies. It can easily participate in public tenders and is exempt from a number of taxes and levies. Thus, unlike other private companies, OYAK does not pay corporate tax, inheritance tax, income tax or stamp and excise duty.

OYAK operates in many sectors of the economy including cement, automotives, insurance, banking, tomato paste production and bed production. It also benefits from certain privileges in public tenders that are not afforded to private companies. Some of the subsidiaries of OYAK are OYAK İnşaat, OYAK Teknoloji, Ataer Holding, Adana Çimento, Mardin Çimento, Bolu Çimento, Ünye Çimento, Aslan Çimento, Oyak Beton, Aslan Beton, Birçim Çimento ve Madencilik, Tam Gıda, OYAK Kağıt Ambalaj, İSKEN, Oyak Renault, Oyak Enerji, HEKTAŞ, TUKAŞ, OYAK Anker Bank, OYAK Yatırım Menkul Değerler, Halk Finansal Kiralama, MAİS, OMSAN, OYTAŞ, OYAK Konut İnşaat, OYAK Pazarlama, Eti Pazarlama and OYAK Savunma ve Güvenlik Sistemleri.

 

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