Government incentives for Erdoan's in-laws' business contradict official narrative

The Turkish Official Gazette appears to contradict claims by Turkey's Defense Industry Presidency (SSB), the government agency responsible for defense procurement, regarding financial support for Baykar, a defense contractor owned by the in-laws of the President Recep Tayyip Erdoan, the daily BirGn reported on Tuesday. .

Despite the SSB's statement that Baykar, which is led by Erdoan's son-in-law Seluk Bayraktar and his older brother Haluk Bayraktar, has not received any financial assistance, incentives or subsidies from the state, according to reports from the Journal official dated September 5, 2019. show that the company has indeed received significant support from the state.

These incentives included customs duty exemptions, VAT exemptions, tax deductions, contributions to Baykars investments and substantial support for employers' share of insurance premiums as well as income tax exemptions. .

A decree signed by President Erdoan in 2019 also designated nearly 18.2 hectares of land in Istanbul's Esenyurt and Arnavutky districts as special industrial zones for Baykar. In March 2023, this land was expanded by another 49.7 hectares near Orlu Airport, Tekirda province.

The SSB statement defending Baykar came after Baykar CEO Haluk Bayraktar claimed that Istanbul Mayor Ekrem Mamolus' communications team orchestrated a smear campaign over the company's alleged sale of jet fuel to Israel. Company.

Baykar, known for manufacturing the TB2 combat drones, came under close scrutiny after allegations spread across social media platforms that Baykar was involved in selling jet fuel to Israel.

CEO Haluk Bayraktar strongly denied the allegations and accused mamolu of defamation.

Recent trade restrictions imposed on Israel by Turkey following ongoing military operations in the Gaza Strip have affected some products, including jet fuel.

On Sunday, Evren Bar Yavuz, a political communications expert, was arrested for disseminating misleading information to the public and propaganda in favor of a terrorist organization after posting a photo of Haluk and Seluk Bayraktar on social media with the caption They sold jet fuel.

What Haluk Bayraktar describes as a plot against Baykar at the behest of Mamolu was triggered by Yavuz's tweet, for which he was arrested.

Yavuz defended himself by stating that he had no connection with the Istanbul Metropolitan Municipality and the mamolu and that he had not written a controversial article titled Why the Alevis [a sizable religious minority in Turkey] should have its own PKK [outlawed Kurdistan Workers Party] which Haluk Bayraktar used to attack mamolu.

The allegations against Baykar were particularly controversial because they came at a time when anti-Israel sentiment in Turkey was at an all-time high since Israel began bombing Gaza in retaliation for an unprecedented attack by the militant group Hamas in southern Turkey. Israel on October 7, which cost around 1,200 lives. human lives and led to the taking of some 250 hostages.

As of April 6, 133 hostages remained in captivity in the Gaza Strip, 129 of whom were kidnapped on October 7.

According to the Gaza Ministry of Health, the death toll in the Gaza Strip now exceeds 34,200.

In a statement, Haluk Bayraktar defended Baykar's integrity and criticized attacks on his company as unfounded and malicious. Our nation and the people of Gaza know our position well; these unfounded slanders will not tarnish our reputation, Bayraktar said. He accused the mamolus team of using deceptive tactics to undermine Baykar's contribution to Turkey's defense capabilities.

The SSB's defense of Baykar is notable because the organization has traditionally overseen and supported the development of Turkey's defense sector rather than defending individual companies, particularly those privately owned.

The move was seen by many as a sign of how the Turkish state is being hollowed out by pro-Erdoan bureaucrats who abandon any pretense of neutrality to defend a company owned by Erdoan's in-laws.

Critics say Baykar received preferential treatment in defense tenders at the expense of state-owned competitors such as Turkish Aerospace Industries (TAI), amid broader accusations of nepotism and cronyism in the industry Turkish defense.