2013 corruption scandal in Turkey

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The 2013 corruption scandal in Turkey or 17–25 December Corruption and Bribery Operation was a criminal investigation that involved several key people in the Turkish government. All of the 52 people detained on 17 December were connected in various ways with the ruling Justice and Development Party (AKP). Prosecutors accused 14 people – including Suleyman Aslan, the director of state-owned Halkbank, Iranian businessman Reza Zarrab, and several family members of cabinet ministers – of bribery, corruption, fraud, money laundering and gold smuggling.^[1]

At the heart of the scandal was an alleged "gas for gold" scheme with Iran involving Aslan, who had US$4.5 million in cash stored in shoeboxes in his home, and Zarrab, who was involved in about US$9.6 billion of gold trading in 2012. Both men were arrested.^[2] The scheme started after Turkish government officials found a loophole in the U.S. sanctions against Iran that allowed them to access Iranian oil and gas. Turkey exported some US$13 billion of gold to Iran directly, or through the UAE, between March 2012 and July 2013. In return, the Turks received Iranian natural gas and oil. The transactions were carried out through the Turkish state-owned bank, Halkbank. In January 2013, the Obama administration decided to close this loophole but instead of immediately charging Halkbank, the U.S. government allowed its gold trading activities to continue until July 2013, because Turkey was an important ally regarding the American-led intervention in the Syrian Civil War, and the U.S. had been working on a nuclear deal with Iran.^[2]

Then-Prime Minister Erdoğan (now President of Turkey) was on a tour of Pakistan when the scandal broke, which analysts believe changed the response of the AKP, or influenced those with the tapes to leak them at a time when Erdoğan was visiting an ally (Pakistan).^[3]