TURKEY: CORRUPTION DEBATE FORESHADOWS A TENSE

C O N F I D E N T I A L SECTION 01 OF 03 ANKARA 001723 SIPDIS E.O. 12958: DECL: 09/26/2018 TAGS: PGOV PHUM PREL OSCE TU SUBJECT: TURKEY: CORRUPTION DEBATE FORESHADOWS A TENSE POLITICAL SEASON REF: ANKARA 1643 Classified By: POL Counselor Daniel O'Grady, reasons 1.4 (b,d) ¶1. (C) Summary and comment: Following a week of fast-flying accusations during which opposition Republican People's Party (CHP) whip Kemal Kilicdaroglu accused ruling Justice and Development Party (AKP) Vice Chairman Dengir Mir Firat of being a "drug baron" and Firat called Kilicdaroglu a "slanderer," the two political heavyweights came together for a September 25 live televised debate in Parliament. The debate, judged a draw by most analysts, brought out few new revelations and was seen as a continuation of CHP's effort to chip away at AKP's support by associating the party with cases of corruption, such as the Deniz-Feneri (Lighthouse) scandal in Germany (reftel). Having lost the AKP closure case battle, CHP believes continuing to pound AKP on corruption will weaken the party in the lead up to March 2009 local elections. The debate foreshadows a tense political season, kicked off when Parliament officially opens on October 1, during which protracted battles over corruption and a preoccupation with upcoming local elections are likely to distract MPs from tackling critical EU-related reforms outlined in the government's Third National Plan. End summary and comment. -------------- --- Political Heavyweights Debate Corruption Charges -------------- --- ¶2. (U) Speaking to a room overflowing with reporters, parliamentarians, and staffers, as well as to millions of nationwide viewers who crowded into coffee shops and restaurants to catch a glimpse of the debate, Kilicdaroglu claimed Firat, while a partner at the MENAS company, was complicit in export fraud and drug trafficking. Kilicdaroglu presented a document he said showed the Council of State fined MENAS for using fake export invoices for goods sent to Ukraine, and asserted that Firat helped promote two bureaucrats who had helped him bury allegations of export fraud. Addressing his drug trafficking claim, Kilicdaroglu explained that after inspectors found heroin in a MENAS truck on February 27, 2008, Firat signed a letter to the Customs General Directorate requesting it not search MENAS trucks. ¶3. (U) Firat responded by saying he had resigned as a partner in MENAS on July 1, 2007, prior to the drug seizure. Though he waited eight months to hand in the notice, he had 
transferred his shares in June 2007. Firat said when the news of the drug seizure broke, he had verified with MENAS that he legally was no longer a partner. "Even if I was still a partner, how can you claim that the owner of a company is responsible for drugs placed in a truck?" Firat asked. At the debate's close, Kilicdaroglu insisted Firat should resign as an MP, and Firat again called on Kilicdaroglu to admit he is a slanderer. ¶4. (U) The debate dominated media headlines, with news outlets drawing different conclusions as to its significance and the victor. Leftist-nationalist "Cumhuriyet" wrote that Kilicdaroglu's accusations "made Firat sweat," while liberal-leaning "Taraf" wrote that Kilicdaroglu "could not knock out Firat." Islamist-leaning "Yeni Safak" wrote there were no winners. "Radikal's" Murat Yetkin and "Milliyet's" Fikret Bila both opined that Kilicdaroglu had failed to offer convincing evidence to support his claims and Firat failed to give a convincing explanation to the allegations of export fraud, leaving viewers unsatisfied. -------------- Is Something Afoot on the Center-Right? -------------- ¶5. (U) Following the debate, Former AKP Deputy Prime Minister Abdulattif Sener revived speculation he plans to form a new center-right party when he criticized Erdogan during an interview with Kanal D's Mehmet Ali Birand. Sener told Birand that Erdogan and other "key government officials" who "hold critical posts in Turkey" are linked to those responsible for the Deniz Feneri scandal. He called on Erdogan to stop "blocking the investigations" into the fraud. Further fueling press speculation about Sener's intentions, on September 25 AKP Yozgat MP Mehmet Yasar Ozturk, rumored to ANKARA 00001723 002 OF 003 be a confidante of Sener, resigned from AKP. Press reported that Ozturk had been disappointed he was named fourth on AKP's candidate list for Yozgat in July 2007 elections, and had long considered leaving AKP. ¶6. (C) Sukru Kucuksahin, a "Hurriyet" journalist with ties to Motherland Party (ANAP),told us that following the Constitutional Court's ruling on AKP closure, "The non-AKP center-right stands no chance in the near term." Kucuksahin said ANAP and opposition Democratic Party (DP) lack attractive new leaders, money, and modern organizational structures. In his view, those dissatisfied with AKP are discussing bygone politicians whose time has passed, including former PM Mesut Yilmaz. Kucuksahin dismissed Sener's chances, saying that his deep religious conviction and fierce loyalty to the state would not be able to attract a broad based following. He thought Turkish Union of Chambers and Commodity Exchanges (TOBB) President Rifat Hisarciklioglu could draw a substantial following, but is unlikely to challenge Erdogan at a time when the prime minister appears relatively strong. ¶7. (C) Halil Sivgin, President of the Turkish Democracy Development Foundation, and former Minister of Health under Turgut Ozal, told us real opposition is nonexistent; only opposition from inside AKP, an economic meltdown, or a military coup could take down AKP. Though he believes the latter two are very unlikely, Sivgin said existing tension between Erdogan and President Gul could escalate into a wider political conflict. Sivgin said Gul, eyeing control of the party, was content to see corruption allegations against Erdogan become public without speaking out. Sivgin expects Erdogan to reshuffle his cabinet to replace ministers Sivgin believes are clearly loyal to Gul: FM Babacan, MOI Sahin, MOE Guler, and State Minister Aydin. ¶8. (C) Director of the International Strategic Research Organization (USAK) Director Sedat Laciner told us there will be no serious challenge to AKP in the near future. Commenting on the center-right, he said ANAP and DP are "flailing" by looking to leaders from prior eras. Laciner agreed that "AKP will fall only by way of a civil war inside the party" but vehemently denied Sivgin's claim about the existence of an Erdogan-Gul conflict. Both Laciner and Kucuksahin believe Erdogan and Gul may have run-of-the-mill disputes on minor policy issues but are in close sync on overall political philosophy. -------------- Tension Expected in Parliament -------------- ¶9. (C) Laciner believes allegations of corruption against AKP will dominate the political debate when Parliament opens for business on October 7 and distract MPs from working on important issues. Having lost the battle to close AKP, CHP will steadily release files it has diligently amassed on instances of corruption that may involve AKP members, and continue to demand a parliamentary commission investigate the Deniz Feneri scandal. Though he expects opposition Nationalist Action Party (MHP) to pile on the criticism, Laciner emphasized that Erdogan, never one to shy away from a political battle, is unlikely to back down. The result would be a distracted Parliament that fails to address the economic and social problems confronting Turkey. AKP's "preoccupation" with March 2009 local elections will also distract AKP, according to Laciner. He expects AKP to introduce "populist measures" to gain votes but pursue none of the critical EU-oriented reforms outlined in the GOT's Third National Plan. ¶10. (C) AKP whip Sadullah Ergin and CHP Konya MP Atilla Kart treated us to a preview of the likely tension during a September 25 Iftar dinner discussion. Reflecting on the Kilicdaroglu-Firat debate, Kart told us AKP is replete with intolerance and corruption. In his view, Erdogan demonstrated AKP's fundamental intolerance when, still seething over Dogan Media Group-owned "Hurriyet's" coverage of the Deniz-Feneri scandal, took the "Hitleresque" step of urging his party members on September 19 not to buy any Dogan newspapers. Ergin countered that it was inappropriate to beleaguer Parliament with allegations of corruption that ANKARA 00001723 003 OF 003 should be pursued in court. Ergin argued that CHP is stuck in the past and lacks its own proposals to address real issues confronting Turkey. -------------- Political Ball in Erdogan's Court -------------- ¶11. (C) Laciner told us AKP has begun to face pressure from unlikely sources, including the Independent Industrialists' and Businessmen's Association (MUSIAD),a union of small business owners usually supportive of AKP. Concerned that continuing tension would foment an uncertain economic environment, MUSIAD leaders pressed Erdogan at a September 25 meeting to address the Deniz Feneri graft allegations by launching a government probe. The group presented Erdogan a report that called on him to address the "deepening uncertainty in Turkey" through "better governance, pluralism and more effective use of consultation mechanisms." The report urged the government to focus on long-term goals and set a specific time-table for implementing EU-related reforms. The report also urged Erdogan to reshuffle his cabinet and inject new public confidence in the economy and politics. Laciner is near-certain Erdogan will reshuffle the cabinet and said the extent of the change will depend on the content of the Constitutional Court's detailed verdict in the AKP closure case, expected out in October. Visit Ankara's Classified Web Site at http://www.intelink.sgov.gov/wiki/Portal:Turk ey WILSON