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02:24, 20 February 2017 Monday
17:23, 16 October 2012 Tuesday

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Turkish army foundation loses economic privileges
Turkish army foundation loses economic privileges

The foundation has shares in 18 military companies, including Turkish Aerospace Industries, Turkish rocket and missile maker Roketsan and Turkish defense industry giant ASELSAN.

World Bulletin / News Desk

The Foundation to Strengthen the Turkish Armed Forces (TSKGV) has lost its privileged status following a recent decision by the Public Procurement Authority (KİK) that a procurement law applies to the foundation like all other state institutions.

The foundation has shares in 18 military companies, including Turkish Aerospace Industries (TAI), Turkish rocket and missile maker Roketsan and Turkish defense industry giant ASELSAN. The TSKGV is exempted from automatic state auditing and can only be audited in the event of a parliamentary request.

Earlier this year, the foundation announced a tender for the organization of the International Defense Industry Fair (IDEF), which is scheduled to be held in İstanbul in 2013. The TÜYAP Fair and Exhibition Organization -- which has organized previous IDEFs -- and İstanbul Trade Fairs (ITF) competed in the tender. The ITF proposed to pay $6 million to the TSKGV for the fair, while TÜYAP proposed $5 million. The ITF was expected to win the tender, but TSKGV announced that the event would be organized by TÜYAP.

The ITF filed a complaint against the TSKGV at the KİK, which immediately ruled that it would not interfere as the foundation is not subject to the Public Procurement Law. Undeterred, the ITF later initiated a lawsuit against the foundation at the Ankara 16th Administrative Court. The court in response decided to stop the execution of the tender, ruling that the TSKGV is subject to the Public Procurement Law. The decision of the Ankara court was forwarded to the KİK. The KİK made a landmark decision, announcing that the TSKGV is subject to the said law. In its reasons, the KİK said the foundation and military companies in which the TSKGV has shares must act in accordance with the Public Procurement Law.

The TSKGV is expected to open a new tender for the organization of the IDEF soon.

The Public Procurement Law replaced the State Tender Law on Jan. 1, 2003. The law stipulates that all state institutions are subject to it. The TSKGV, however, ignored the law for years and acted like a private company in its tenders.

The KİK decision is reminiscent of an earlier decision by the authority to strip the Turkish Armed Forces Assistance Center (OYAK) of its privileges in public tenders. After the KİK decision in 2011, OYAK lost its privileged status and was forced to compete with other businesses on an equal footing. OYAK operates with a unique structure among world armies. It has more than 60 companies involved in very diverse industries, from bed frames to mining.

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Press agenda on February 19
Press agenda on February 19

Here are the main topics World Bulletin’s English Desk plans to cover Sunday Feb. 19, 2017 (coverage may change depending on developing/breaking stories): BAGHDAD Iraqi forces launch an offensive on jihadists defending Mosul's west bank, in what could be the most brutal fighting yet in a four-month-old operation on the city. 700 words 0530 GMT by Ammar Karim and Jean-Marc Mojon US-militant-Egypt-prison,2ndlead WASHINGTON The sheikh Omar Abdel Rahman, an Egyptian-born cleric linked to the 1993 World Trade Center bombing, dies at 78 in a US prison facility after a long battle with diabetes and coronary artery disease. 650 words moved by Maggy Donaldson. File Picture Ukraine-Russia-conflict,WRAP MOSCOW A truce between government forces and pro-Russian rebels in eastern Ukraine will come into force Monday, Moscow and Kiev say, though some separatists are already labelling it unfeasible. 500 words moved by Anais Llobet Entertainment-film-festival-Germany,WRAP BERLIN Hungary's "On Body and Soul", a love story set in a slaughterhouse, wins the Golden Bear top prize at the Berlin film festival, Europe's first major cinema showcase of the year. 700 words moved by Deborah Cole. Picture. Video Also moved: Entertainment-film-festival-Germany-prizes,FACTS Entertainment-film-festival-Germany,POINTS Entertainment-film-festival-Germany-winners,CHRONO -- ASIA -- NKorea-Malaysia-diplomacy-community,SCENE KUALA LUMPUR Malaysia's only North Korean restaurant promises a glimpse into life in the reclusive state but it has been shuttered since news broke of the assassination of leader Kim Jong-Un's brother, with security guards turning customers away. 650 words 0600 GMT by Elizabeth Law. Picture. Video -- AMERICAS -- US-politics-Trump-Melania,lead MELBOURNE, Florida First Lady Melania Trump, usually a demure and soft-spoken presence at her husband's side, breaks with form, reciting the Lord's Prayer before issuing a scathing rebuke of his enemies and her critics at a campaign-style stop in Florida. 600 words moved by Michael Mathes with Stephanie Griffith in Washington. Picture. Video. US-media-politics-technology WASHINGTON As President Donald Trump warns of a crackdown on US government leaks to media, interest is growing in technology tools that allow sources to share information anonymously. 750 words moved by Rob Lever Venezuela-politics-opposition-US CARACAS Venezuela and the United States lock horns again over political prisoners held by Caracas, including over the detention of a jailed opposition leader whose supporters took to the streets of the capital to demand his release.