TODAY’S – Former minister to earn a fast TL 74 million from real estate project

Former minister to earn a fast TL 74 million from real estate projectA company run by former Environment and Urban Planning Minister ErdoIan Bayraktar — who resigned after being implicated in corruption allegations that surfaced in December 2013 — and his family is slated to earn TL 74 million in profit from a real estate project built on land he purchased two years ago, according to a report in the Hurriyet daily on Friday.Bayraktarand#39s family company purchased the land — a 10,000-square-meter parcel located in Istanbuland#39s Anatolian quarter of KoIuyolu — for TL 42 million.

Construction on the KoIuyolu Elysium Elit residential project has commanded serious interest and is expected to be completed by 2016. Units in the luxury residential complex went up for sale on Thursday, reportedly commanding prices starting at $4,300 per square meterThe construction company overseeing the project, Ofton InIaat, will earn 45 percent of the revenue from sales of units on the land, while the owner of the land, Bayraktarand#39s family firm Bayraktar InIaat, will get the remaining 55 percent, according to Ofton InIaat Co-Chair Ismail HakkI Altun, who spoke to Hurriyet.

Moreover, Bayraktar has benefited heavily from having licensed the construction project as an urban transformation project on the basis that the single building originally found on the land was risk-prone. Such licensing allowed the former minister to benefit from a 1 percent tax instead of the normal 18 percent rate, according to the report.

Bayraktar had confirmed the purchase of the KoIuyolu land in statements to Hurriyet in July of last year andldquoThe company that I founded in 1994 and later left to my children purchased the land in KoIuyolu and has business there. It is very reasonable and innocent.

There is no misconduct regarding taxes or insurance. It is not secret or hidden.

The company is mine and I own 7 percent of the shares. Essentially I founded it, and I made it grow.

However, in the past 20 years my children have carried it along. When I entered the bureaucracy the company didnand#39t grow very much.

However, it has material wealth of TL 70-80 million, maybe TL 100 million, maybe more,andrdquo said BayraktarBayraktar has consistently appeared in the press over the past year due to his alleged involvement in various scandals and participation in bribery. Immediately following the major corruption allegations that went public on Dec.

17, 2013, Bayraktar publicly lashed out at then-Prime Minister Recep Tayyip ErdoIan, saying that ErdoIan should step down as he was the mastermind behind the corrupt dealings. He later recanted his statement, saying he was caught up in the moment.

During his tenure as head of the Housing Development Administration of Turkey (TOKI) in 2012, Bayraktar admitted to fraudulently awarding millions in contracts to one construction company.

SOURCE: Today’s Zaman