The case of Turkish businessman Sezgin Baran Korkmaz resurfaced in early August 2021. Korkmaz was arrested in Austria on June 19, 2021 at the request of the US, after being accused of money laundering, corruption and fraud. However, Ankara is fighting a legal battle against Washington in Vienna, as both the US and Turkey want Korkmaz to be prosecuted before their courts. The strained situation between the two countries is even made worse by the fact that their relationship has been tense for a while, on account of their conflicting views on a number of issues.
Washington’s discontent
The two main reasons for the mounting tension between Washington and Ankara are the following:
1. Washington's Insistence that Korkmaz be extradited to the US:
The Turkish businessman that Washington wants to lay hands on is a close ally to the Turkish President Recep Tayyip Erdogan. He is accused of having carried out a huge fraud scheme with Jacob Kingston and other owners of an energy company called Washakie Renewable Energy. Jackob and Isaiah Kingston filed false claims for over USD 1 billion in refundable renewable fuel tax credits for the production and sale of biodiesel that the company never produced, as the tanks of the so-called fuel were actually filled with water or adulterated petrol, which they sent to their co-conspirators. This scheme yielded 470 million dollars. Korkmaz and his partners used this money in buying a Turkish airline called Borajet, hotels in Turkey and Switzerland, a yacht called 'Queen Anne', a villa, and an apartment on the Bosporus in Istanbul. Washington also accused Korkmaz of laundering more than 133 million dollars through bank accounts in Turkey and Luxembourg. Korkmaz is also facing ten wire fraud charges, as well as the charge of obstructing an official proceeding.
The Turkish president is against extraditing Korkmaz to the US because this may result in revealing details about possible corruption of the Turkish government, even endangering Erdogan himself. Following is a summary of the main corruption allegations that may get more attention if Korkmaz is prosecuted in the US:
A. Erdogan's Minister of Interior may be involved in corruption: A Turkish Mafia leader has accused Süleyman Soylu, Minister of Interior, of helping Korkmaz to escape from Turkey through warning him about the investigations. Perhaps what makes this accusation possibly credible is the fact that Korkmaz confessed that bribes given to top security officials on holidays (not to mention other occasions) amounted to 3 million USD. Korkmaz also said that he gave top officials in Istanbul's directorate of security other bribes that included watches, bracelets and necklaces. Besides, Ali Mahir Basarir, a parliament member from the opposition, previously referred to the relationship between Korkmaz and the former and the current ministers of interior. He further accused them of using Korkmaz's private jet several times.
B. Erdogan himself is not beyond suspicion: Erdogan is possibly involved, one way or another, in the Korkmaz case. Two years ago, Kingston met Erdogan, and it was agreed that the former would be granted privileges, including entering Ankara without a passport under police protection, in return for buying Borajet airlines, with the help of the third defendant, a Russian businessman called Lev Aslan Dermen, who is currently detained in the US. Investigations by the former special counsel Robert Mueller have revealed that officials from Kingston's company helped carrying out intelligence operations for Erdogan in the US.
2. Ahrar Al-Sharqyia was designated a terrorist organization:
The US designated Ahrar Al-Sharqyia militia in Syria as a terrorist organization in July 8. This is the first time US Department of Treasury designates a pro-Turkish militia. On the same day, the Department imposed sanctions on Hasan Al-Shaaban, describing him as ' a financial agent for Al-Qaeda living in Turkey'.
In January 2021, Inspector General of the Department said that ISIS depends on 'logistic centers in Turkey' for international money transfer, especially between Iraq and Syria. These sanctions reveal that the US is not accepting the Turkish support for terrorist organizations in Syria. The current US administration is obviously not willing to turn a blind eye to Ankara's use of terrorism in Syria. This means that Washington can possibly depend on Kurds, rather than Turkey, to achieve its purposes there.
Turkey still has some cards to play
Despite of the aforementioned, Turkey still can exert pressure on the US, so that Erdogan's corruption and Syrian policies can go unpunished, through the following:
1. Afghan Refugees:
The US planned to provide asylum for Afghans, who assisted the US army and their families in third countries, including Turkey. However, Turkey refused to cooperate, and described Washington's decision as 'irresponsible', as it was taken without consulting Ankara. In this context, Turkey feared another influx of refugees, creating another immigration crisis. However, Turkey may accept further refugees as a leverage in its relations with the US and Europe through demanding more financial support of Europe in return for preventing the influx of Afghan refugees to European countries.
2. Kabul Airport Security:
Turkey negotiated with the US to maintain Kabul airport’s security, in the last NATO summit. Ankara aims to play a role in the future of Afghanistan, even after Taliban took over the country. Deploying Turkish forces in Afghanistan will require financial aid that Turkey expects to receive from the US.
Conclusion
It is noticeable that the Korkmaz case will constitute a threat to Erdogan on more than one level. For instance,
1. It is likely to tarnish Erdogan's reputation:
The Korkmaz case is not the first corruption case in which Erdogan is involved. In 2017, it was discovered that the Turkish president was personally involved in a one-billion-dollar deal, including money laundering and bribes, to help Iran evade sanctions imposed on its nuclear program. Undoubtedly another scandal will deal a death blow to the Turkish president's popularity, especially with the deteriorating economic situation in Turkey.
2. It can have a negative impact on foreign investment:
The Turkish economy has suffered for several years, and the situation worsened due to Covid-19 pandemic. The president's involvement in corruption may affect the rate of foreign direct investments, which can possibly improve the economic crisis.
3. It can result in exposing more scandals:
Investigating Korkmaz's case can result in disclosing more details about the role that Erdogan and his inner circle played in it, exposing that they may have facilitated and turned a blind eye to several illegal schemes. However, US official turned down Korkmaz offer to testify about any politicians involved in the case.
