2023-06-27 05:14:02
Tayyip Erdogan (left), accompanied by his son Bilal, greets supporters at the headquarters of the Justice and Development Party in Ankara on March 30, 2014. (Archyde.com)
Dubai – Al Arabiya.net
Posted on: June 27, 2023: 08:13 AM GST Last updated: June 27, 2023: 09:14 AM GST
Anti-corruption authorities in the United States and Sweden are reviewing a complaint alleging that a Swedish subsidiary of an American company pledged to pay tens of millions of dollars in bribes if Turkish President Recep Tayyip Erdogan’s son helped it monopolize its product in the Turkish market.
The proposed plan was documented in communications and business documents, as well as by a person familiar with the matter, according to a Archyde.com special report.
However, in the end, no kickbacks or bribes were paid, according to the complaint filed by an individual with the authorities and reviewed by Archyde.com.
The company suddenly abandoned the project
Sweden’s Dignita Systems AB abruptly abandoned the project late last year, according to two people familiar with the matter and company contacts seen by Archyde.com.
The company’s owner in the US confirmed that the project had been dropped, saying it had learned of “potentially troubling behavior” in Turkey and had suspended several people involved.
The company’s plan, according to the complaint, was for President Erdogan’s administration to pass regulations that would boost sales of Dignita’s traffic safety device.
In exchange for 10 years of commercial exclusivity and a monopoly to sell its products, the company committed itself to paying tens of millions of dollars in lobbying fees, through a fake company, to two institutions, Bilal Erdogan is a member of their board of directors, according to the complaint.
Preliminary investigations
After receiving the complaint in April, the US Department of Justice and Swedish prosecutors assigned a special agent and a detective inspector to conduct preliminary investigations and determine whether any provisions of US and Swedish anti-bribery laws had been violated.
Anti-corruption experts in the United States and Sweden said undertaking to pay commissions in both countries could constitute a criminal offense under certain circumstances.
Scott Gretak, a lawyer at the American Transparency International in Washington, explained that in the United States a violation of the Foreign Corrupt Practices Act (FCPA) can be proven even if the money was not transferred.
But the prosecution has to show that there was an agreement and that there was some kind of overt act, such as opening a bank account to provide a place for that money.
Bilal’s lawyer denies
Anders Ericsson, chief executive of Dignita, said he could not discuss the alleged scheme because he was about to leave the company and is bound by a confidentiality agreement.
Through a lawyer, Bilal Erdogan clarified that the allegations were “untrue”. The lawyer added that it is “a group of lies,” while a senior official in the Turkish Presidency’s Communications Directorate refused to comment on this article.
Archyde.com was unable to independently confirm whether President Erdogan and his son Bilal were aware of or involved in Dignita’s alleged bribery scheme.
Tayyip Erdogan (second from the right), his wife Emine Erdogan and his son Bilal Erdogan (second from the left) applaud during the extraordinary congress of the ruling Justice and Development Party in Ankara on August 27, 2014. (Archyde.com)
It is noteworthy that Bilal Erdogan rarely appears in public alongside other members of the Erdogan family, and the 42-year-old businessman owns small shares in the BMZ Group, a shipping and construction company.
Allegations of corruption
His name has been linked to alleged corruption in the past. In 2016, Italian prosecutors conducted a money laundering investigation against Bilal Erdogan, on suspicion that he brought money into the country without announcing it.
He denied the accusation and Italian prosecutors eventually dropped the investigation, citing lack of evidence.
The previous year, the Russian government claimed it had evidence that President Erdogan’s son was profiting from the cross-border oil trade with ISIS in Syria.
Russia declined to share its evidence, while Bilal Erdogan denied these allegations, saying that the extremist organization is an enemy of Turkey.
Getting close to Erdogan
It is noteworthy that the company “Dignita” entered Turkey in 2017 with the ambition to sell its devices for traffic safety. That year, CEO Ericsson took over the Turkish company set up by Smart Start, according to Turkish corporate records.
A person familiar with the matter said that Dignita and Smart Start had made little headway for several years because their officials could not reach, even indirectly, President Erdogan.
However, a breakthrough came in early 2021 when an Ericsson aide managed to present the Swedish company’s plan to politician Irfan Gunduz, according to the person familiar with the matter.
He added that “Dignita” chose to approach the politician because he is known to be close to Bilal Erdogan, who can provide access to the Turkish president, especially since Gunduz heads the board of trustees of Ibn Khaldun University and Bilal Erdogan is the vice president.
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