COUNCIL OF STATE CANCELS FREEZING OF AL KADI ASSETS

C O N F I D E N T I A L ANKARA 004266 SIPDIS SIPDIS E.O. 12958: DECL: 07/24/2016 TAGS: KTFN PTER PREL TU SUBJECT: COUNCIL OF STATE CANCELS FREEZING OF AL KADI ASSETS REF: (A) ANKARA 4095 (B) YORKS/STANA FAX DATED JULY 18 Classified By: Ambassador Ross Wilson for reasons 1.4(b) and (d). 1.(SBU) On July 20, the Turkish Council of State, the judicial review body that has jurisdiction over the actions of state institutions and administrative issues, reversed a December 2001 Council of Ministers ruling that froze the assets of Saudi businessman Yassin Al Kadi, designated as a terrorist financier under UNSCR 1267. The decision comes on the heels of several statements in which Prime Minister Erdogan defended Al Kadi, calling him a "philanthropist who loves Turkey" and denying his al Qaeda connection (reftel). The Government has 30 days to object to the decision. ¶2. (C) Metin Kilic, Department Head in MFA's Security Affairs Directorate, told us that the Council of State's decision shocked his department and noted that the decision was based on a judgment that a court decision is needed to freeze assets, not just a Council of Ministers, decree. Kilic said that the MFA's Legal Department planned to object to the ruling, saying that Turkey is obligated to implement the 1267 decision because of the threat of terrorism. Kilic thought it was unlikely that the Prime Ministry would object to the Council of State decision. A Justice Ministry official declined to comment to us about the ruling, except to note that freezing assets based on a Council of Ministers, decree was exceptional. ¶3. (SBU) Before the ruling, in a July 19 interview with Turkish television network NTV, the Ambassador reiterated that, under UNSCR 1267, countries have obligations to take actions against designated terrorist groups and financiers. He also raised this point with MFA Deputy Undersecretary Ertugrul Apakan, and left the text of Ref B describing Al Kadi,s terrorist links as a non-paper. 4.(C) Comment: The timing of the Council of State ruling is suspicious, given the on-going high-profile political controversy here over Al-Kadi. The ruling sets up a situation in which Prime Minister Erdogan will have to decide whether the GOT should appeal the Council of State ruling in order to remain compliant with the UN 1267 resolution, or follow through on his pro-Al Kadi statements and leave the ruling unchallenged. He is likely to come under pressure from the state bureaucracy, in particular the Foreign Ministry, to remain in compliance with the UN resolution. Visit Ankara's Classified Web Site at http://www.state.sgov.gov/p/eur/ankara/ WILSON