ABDuLHAMIT – How states pay for collapsed firms

How states pay for collapsed firmsPerhaps the most important revolution in Turkeyand#39s legal history is the recognition of the right of the individual to apply to the European Court of Human Rights (ECtHR). This right is a significant one for those who are not satisfied with the domestic judicial processes and serves as a great bolster against domestic victimization.

It is also a major step forward to improve the standards of our legal systemTurgut zal introduced this reform, which was extremely important for the supremacy of law in Turkey. The right of the individual to apply to the ECtHR was recognized in 1987 by the zal-led government.

A number of human rights violations by the state, including restrictions on freedom of thought, violation of fair trial principle and burning villages, were reviewed by the European court, which ruled against Turkey. The Justice and Development Party (AK Party) government took another step in 2004 when it committed to the EU membership bid to make the European Convention on Human Rights (ECHR) and the ECtHR case law part of the domestic legal landscape by amending Article 90 of the Constitution.

Former ECtHR judge RIza Turmen upholds that by this move Turkey recognized the superiority of the ECtHR rulings over domestic legislation. This means that the legislative and executive branches have to consider the ECtHR rulings and they are obligated to make laws that are consistent with these rulings, that the judiciary has to make sure that their verdicts comply with the European courtand#39s decisions and that any legislation violating the convention and the court rulings are considered breaches of the Turkish Constitution.

Another critical development in fulfillment of the universal legal standards was the introduction of bill no. 4686 on international arbitration, which came into force in 2001.

Under this law, domestic and international corporations operating in Turkey acquired legal assurances in the event of any breaches. Turkey was able to attract only $15 billion in foreign direct investment (FDI) during the period between 1923 and 2002 however, this figure increased to $124 billion after 2002.

Taking the legal step played a great role in this change. Those who know the world economy and the conditions in Turkey are well aware of the importance of a smooth legal system and the risks associated with moving away from the law.

Deputy Prime Minister Ali Babacan is one of these people, and for this reason he frequently emphasizes the importance of legality and subscription to the law. In a recent statement he said: andldquoUnless we become a state governed by the rule of law, our goal of becoming one of the 10 biggest economies in the world will remain a dream It is not possible to become a developed economy without the supremacy of law.

andrdquo Noting that Turkeyand#39s reference is the Council of Europe, Babacan cites the criteria for the supremacy of law as follows: andldquoAre the laws clear and applicable to all? Are the acquired rights respected? Is there stability in the enforcement of the laws? Transparency, accountability and combating corruption are indispensable parts of an aanced democracy and economy. If you make a rule but fail to enforce it, then that rule becomes obsolete.

These are indicators of the legal assurance and supremacy of the law. Confidence disappears if they are not observed.

andrdquoRespecting the law is essential not only for Turkey but also for any country that wants to be part of the civilized world otherwise, the state will have to pay a huge price. Most recently, the International Court of Arbitration ruled that Russian energy company Yukos must pay $50 billion in fines to its former shareholders because the state forced the company into bankruptcy.

In its decision, the court stated that the shareholders suffered from injustice at the hands of the Russian state. After the bankruptcy, state-owned Rosneft purchased most of Yukosand#39 shares.

Moscow declared that they would not recognize the fine imposed on Yukos.Independent of this case, the shareholders also filed an application with the ECtHR in 2004 claiming that Yukos seized their properties and assets and sold them illegally.

In this case, the European court ruled that Russia must pay 1,866 billion euros in compensation.Consider these legal principles and facts and then imagine that the trials and prosecutions conducted in special courts by the previously identified judges, the horrible plans drafted to intimidate 100,000 corporations, the moves taken to eliminate educational institutions and media bodies and the statements by Prime Minister ErdoIan and Interior Minister Efkan Ala to ensure the collapse of a financial institution.

AK Party founder and former Deputy Prime Minister ErtuIrul YalInbayIr said these are grave moves that could be reviewed by the Constitutional Court acting as the Supreme State Council. And it is obvious that Turkey will have to pay a huge amount of money as part of its international legal obligations.

Is anybody listening to Babacanand#39s warnings.

SOURCE: Today’s Zaman