Turkey has seized ownership of six companies and placed 10 under state trusteeship in the fuel and liquefied petroleum gas (LPG) sector, justice minister Akin Gurlek (@abakingurlek) announced on June 23 on social media.

The operation also saw 27 businessmen detained in coordinated raids spanning nine provinces, namely Istanbul, Ankara, Bursa, Kirikkale, Kirsehir, Mardin, Konya, Hatay and Nigde.

The enforcement action against industry is the latest aggressive move by the minister. It comes shortly after an abandoned move against major players in Turkey's poultry industry.

Under leadership of RTErdogan

“Under the leadership of our Honorable President, Mr. @RTErdogan, we resolutely continue our fight against crime, smuggling, tax irregularities, and qualified fraud targeting public institutions, in full coordination with the Ministry of Interior, the Ministry of Treasury and Finance, the Ministry of Trade, and our Ministry of Energy and Natural Resources,” Gurlek wrote.

“As part of the investigation conducted by our Istanbul Anadolu Chief Public Prosecutor's Office, a major operation was carried out in coordination with our Istanbul Provincial Gendarmerie Command, the Tax Inspection Board, MASAK [Financial Crimes Investigation Board], the Directorate General of Customs Enforcement, EPDK [Energy Market Regulatory Authority] and the TMSF (Savings Deposit Insurance Fund),” he added.

The operation is focused on alleged large-scale tax evasion and fraud. A network of companies that imports between 350,000 and 400,000 tonnes of LPG annually has allegedly utilised fictitious export transactions and fraudulent invoicing to systematically bypass value-added tax (VAT) and special consumption tax liabilities.

Among the seized – or not 

Gurlek did not state the names of the targeted companies and individuals. According to local daily Sozcu, Avgaz Enerji, BDY Group Yatirim (owned by Baday Grup), Birhat, Istanbul Likit Gaz, LPGAS Enerji, Pet Gaz, Setgaz, Yigitler Uretim, Ras Otomotiv, Global Terminal Hizmetleri and Ditas (DITAS) were among the seized companies.

Borsa Istanbul-listed Ditas is a unit of Baday, owned by Veysel Baday.

Following the media reports of the operation, Global Terminal Hizmetleri (GTS) said in an official statement that it has not been subject to any trustee appointments, legal actions or administrative proceedings under the move made by the authorities.

Its inclusion in the media reports was an inadvertent clerical error, it added.

Move made after poultry U-turn

On June 12, the Istanbul chief prosecutor’s office (@istanbulCBS) launched a sweeping corporate raid against the poultry sector. However, within days, all detainees were released and all company seizures were lifted.