Turkish finance minister details wealth fund audit

ANKARA (AA) - Turkey's newly created sovereign wealth fund will be strictly controlled by multiple institutions, including independent auditors, the country’s finance minister said on Tuesday.

On Sunday, the Prime Ministry said treasury shares in a number of state institutions would be shifted to the sovereign wealth fund.

Speaking to the private news channel CNNTURK in Ankara, Naci Agbal laid out the manner in which the fund would operate.

"There will be a three-stage audit for the wealth fund. First, independent audits will take place as part of a Capital Markets Board of Turkey obligation. Because everybody first looks at such reports," Agbal said.

The minister said the second step would involve a special controlling process conducted by three veteran auditors appointed by the Prime Ministry, again in accordance with international independent auditing standards.

"And finally, the parliament will investigate all reports related to the fund and undertake a detailed control for a third time," he said.

Addressing the international credibility issue, Agbal said the fund’s international reputation depended on a solid audit mechanism.

Among the companies included in the new wealth fund are state-run lender Ziraat Bankasi, the country's stock exchange market Borsa Istanbul and the General Directorate of Post and Telegraph Organization (PTT).

Also included were Turkey’s Petroleum Pipeline Corporation (BOTAS), national petroleum producer TP, communication services and satellite technologies company TURKSAT, and 6.88 percent of treasury shares in telecommunication company Turk Telekom plus Turkey's official mining company Eti Maden and the General Directorate of Tea Enterprises (CAYKUR).

On Monday, the treasury's 49.12 percent stake in the national flag carrier Turkish Airlines and 51.11 percent shares in the state-lender Halkbank were also transferred to the fund.

"Intervention by the wealth fund in the companies' current managements is out of question. The fund will only use the rights that derive from being a shareholder in these companies," said the finance minister.

Agbal added the fund would support mega-projects, namely in the infrastructure sector, and make investments while abiding by international standards.