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ISTANBUL

With a probe heating up into corruption in the Istanbul Metropolitan Municipality, the alleged misuse of power in the recent acquisition of four luxury villas linked to Mayor Ekrem Imamoglu, who was arrested on Sunday, is in the spotlight.

At the center of the investigation, Imamoglu is accused of manipulating property deals for personal gain. The inquiry raises questions about whether he used his position to facilitate the purchase of luxury villas by a close associate through a public tender, with allegations that the deal financially benefited the friend involved.

The investigation also highlights actions taken after last year’s Turkish local elections that allegedly involved further manipulation of public resources.

The Istanbul Chief Public Prosecutor’s Office is looking into Imamoglu and 99 other individuals on charges including bribery, aggravated fraud, and bid-rigging. Additionally, some defendants are facing allegations related to aiding a terrorist group.

The investigation follows the trial of 23 defendants, including Nuraydin Sak, deputy mayor of the city’s Buyukcekmece district, who are accused of constructing 144 luxury villas worth 8.63 billion Turkish liras ($445 million) through fraudulent means and bribery. The luxury villas were built without proper permits, violating zoning laws and creating significant risks in case of an earthquake. Court experts have accused several municipal officials and contractors of negligence and fraud, and some defendants could face prison sentences of over 300 years.

Alleged property dealings

The core of the investigation revolves around the acquisition of four luxury villas by businessman Ali Nuhoglu, whose company, Gulluce Tarimcilik, is among those implicated. Nuhoglu, in his testimony, confirmed that the company was established specifically for the purpose of acquiring the properties, originally valued at approximately $4 million, from private individuals.

Nuhoglu explained that after facing zoning constraints, he negotiated the sale of the luxury villas to Imamoglu Construction, a company connected to the mayor. The deal, involving a luxury villa in Beylikduzu and a currency exchange rate of 87 million liras ($4.4 million), later increased to 100 million liras ($5.1 million) due to delays.

"I didn’t transfer Gulluce Tarimcilik for 15 million liras ($765,000). At current rates, my company’s transfer price amounts to roughly 150 million liras ($7.65 million)," Nuhoglu said in court testimony.

Imamoglu tried to defend his actions in the expropriation of land in the Sariyer district's Resitpasa area, insisting that the so-called project was transparent and the purchase was made using loans from a Turkish bank on behalf of Istanbul Metropolitan Municipality. He claims the transaction was made for the purpose of converting the land into a green space for public use. However, it is argued that the land across Imamoglu's luxury villa was purchased and expropriated using municipality revenues and for the sole purpose of increasing the valuation of his property.

The mayor's defense team has denounced the investigation as politically motivated and called for Imamoglu’s immediate release.

Investigation into municipal influence and public resources

Investigators are focusing on whether municipal resources were misused to influence property valuations and facilitate favorable financial outcomes for the individuals involved. The case has generated considerable debate over governance and transparency within the Istanbul Municipality, with critics suggesting that Imamoglu’s alleged involvement in the property dealings reflects a broader pattern of misconduct within the municipality.

With multiple suspects in custody and further financial records under review, legal proceedings are expected to clarify whether public authority was improperly used for personal financial gain.

Nuhoglu responded to allegations of undervaluation of the luxury villas, saying that a 15 million lira ($765,000) payment was not reflected in the official contract and that the exchange rate difference of 87 million liras ($4.4 million) was not accounted for in the final sale price. He said the luxury villas were financed through his company's commercial activities and that all payments were documented.

The investigation continues to unfold, with further developments expected as legal proceedings progress.