February 28th: Unveiling the Dark Side of History
In 1997, the anniversary of the intervention against the democratically elected government known as the February 28th postmodern coup resurfaced the profound economic damage it caused. This political crisis, associated with the decisions made on February 28th, extended beyond the overthrow of the legitimate government. In addition to human rights violations such as profiling citizens based on their lifestyle and causing them to lose their jobs, this crisis took on an economic dimension. During that period, due to the actions of the actors involved in February 28th, 21 banks were emptied, leading to a major economic crisis in 2001. These banks, which were emptied through irregular transactions, were unable to continue their operations and were closed, transferred to the Savings Deposit Insurance Fund (TMSF).
The money evaporated in the bankrupt banks was reimbursed to the citizens by the TMSF using borrowed funds from the Treasury. In other words, the losses incurred by those who entrusted their money to these banks were covered by the taxpayers. The significant damage that led to the economic crisis was determined through expert reports and court decisions. However, those identified as responsible, particularly the “dominant partners” of the banks, were reluctant to compensate for this loss. The TMSF seized all assets of the responsible parties, and the management and control of their companies were transferred to the TMSF. The public became aware of the existence of the Savings Deposit Insurance Fund (TMSF).
The Legacy of February 28th: The Introduction of the Term “Bank Looting” in Turkish Vocabulary
Prominent media and bank magnates of the time, known as “bank dominant partners” in legal terms, claim that Turkish courts make political decisions and that they were unjustly deprived of everything. While the issue of whether Turkish courts make political decisions is debatable, the outcome of the cases involving the TMSF in foreign courts became a subject of interest.
Recovery of $24 Billion from the Responsible Parties of the Emptied Banks
The TMSF continues its legal battle with 111 lawyers and affiliated law firms both domestically and internationally. Thanks to this fight, $24 billion has been recovered from the pockets of the public to date. The TMSF is a public institution established to protect citizens who save and entrust their money to banks. Similar institutions in every country insure the funds of citizens in banks. If a bank fails to fulfill its obligations and is to be closed, the citizen’s claim from the bank is reimbursed by the TMSF up to the insurance limit amount. The insurance limit in Turkey for 2025 is 950,000 TL. All details regarding the annually updated insurance limit are announced on the institution’s official website.
Cem Uzan Struggles with Restrictions on Financial Transactions in France
On the other hand, many responsible parties of the emptied banks received prison sentences. Among the most famous of these, Erol Aksoy and Cem Uzan fled abroad through illegal means after their sentences were finalized. Following a legal process lasting over a decade, Erol Aksoy was sentenced to 8 years, and Cem Uzan to 47 years in prison. Despite Uzan’s constant announcements on social media about his imminent return, he is unable to come back to Turkey for this reason.
TMSF Wins Lawsuits Against Cem Uzan in France
TMSF achieved significant results in lawsuits against Cem Uzan in France. As a result of these cases, Cem Uzan is no longer able to withdraw money from French banks or sell his real estate properties in France due to precautionary measures. The Uzan Family had also lost the “Libananco Case” at the International Arbitration Court within the World Bank Building in Paris, which lasted around 5 years. In the lawsuit demanding a compensation of $20 billion from Turkey due to the seizure of CEAS and KEPEZ electricity companies, the court ruled in favor of Turkey.
TMSF Seizes Erol Aksoy’s Apartment in New York
Another significant development was the legal battle against the former bank and media mogul Erol Aksoy’s attempts to evade his debts. TMSF identified and filed a lawsuit against the luxury apartment owned by Aksoy’s children in New York. The New York court, ruling in favor of the TMSF, decided to sell the apartment. The proceeds from the sale were transferred to TMSF accounts and deducted from Aksoy’s debt. The court also ruled that “Erol Aksoy and his daughter are not reliable witnesses due to their inability to explain the source of the money and providing contradictory statements.”
Paris Court Rejects Claim of “Political Decisions by Turkish Courts”
In a recognition and enforcement lawsuit filed by the TMSF in Paris (Tribunal Judiciaire de Paris) to apply the Turkish court decision in France, Erol Aksoy claimed that the independence of Turkish courts was compromised and under the influence of the government. However, since Aksoy cited Turkish court decisions in his favor as evidence, he failed to convince the court. In the hearing on July 6, 2022, the court decided that the court decision in Turkey is also valid in France.
