Expert’s report says Koza İpek Holding accounts too perfect to be real

An expert’s report that was used as the basis for a decision to appoint trustees to replace Koza İpek Holding’s executive board says that the corporation’s accounts are too impeccable and therefore cannot be true, the holding’s lawyers said on Tuesday.

The Ankara 5th Criminal Court of Peace ruled on Monday for the takeover of the administration of the holding’s 22 companies, including two television stations and two newspapers that have a critical editorial position toward the current Turkish regime, after a request to that effect from a prosecutor. Akin İpek, the CEO of the holding, said hours after the decision that the government took action after failing to find anything illegal during inspections of his company.

Auditors accompanied by a police escort conducted a raid on the offices of Koza İpek Holding in Ankara last month while simultaneous raids on subsidiaries of the group were being carried out elsewhere, in what appears to be a part of a politically charged campaign against the media spearheaded by President Recep Tayyip Erdogan and the Justice and Development Party (AK Party) government, which has also targeted the faith-based Gulen movement since the eruption of a corruption scandal that implicated people in Erdogan’s inner circle in December 2013.

The holding company’s lawyers, speaking to the media as politicians, journalists and demonstrators waited outside the affected media outlets in a show of solidarity with the conglomerate, said there was no concrete proof of wrongdoing in the expert’s report, which was prepared after months of thorough inspections of the holding’s accounts.

Hakan Yildiz, one of the lawyers, read a paragraph from the expert’s report, and said, “It turns out being perfect is enough for reasonable suspicion, for strong suspicion.”

The paragraph reads as: “However, in countries which have fragile economic conditions such as Turkey, it is not compatible with financial, technical and commercial realities that corporate structures, in which high amounts of money are exchanged, have no flaws. A perfect corporation, accounting system and financial structure does not exist in anywhere in the world. However the suspected corporation has drawn a perfect picture in the obtained official documents about the relevant individuals or the corporations.”

The seizure of the management of the holding company comes less than a week before the Nov. 1 parliamentary election.