Baydemir complains of gov’t double standards
Güncelleme Tarihi:
by Aram Ekin Duran - Referns
Oluşturulma Tarihi: Aralık 29, 2008 00:00
ISTANBUL - Osman Baydemir, mayor of Diyarbakır Metropolitan Municipality, says they are the only municipality in Turkey not allowed to establish companies and were forced to privatize the municipality’s Diyar Company for this reason.
The mayor of the Diyarbakır Metropolitan Municipality has complained about the government blocking it from establishing companies.
Talking to daily Referans, Osman Baydemir said his is the only metropolitan municipality in Turkey that does not own any companies. Despite the fact that the province’s population has tripled in the last 15 years due to internal migration it is not permitted to receive funds from the private sector or from civil investment initiatives. According to the laws, a municipality can only run a private company with the consent of the interior ministry and the approval of the prime ministry. Baydemir claimed that despite the fact that the municipality has received the consent of the interior ministry, it was unable to get the approval of the prime ministry.
"Ömer Dinçer, the undersecretary at the Prime Ministry at the time, told us, ’We will not allow you to establish companies,’" he said adding: "Abdülkadir Aksu, the interior minister at the time granted the permission for it to be run by the metropolitan municipality, but the Prime Ministry rejected the application."
Munucipality's company forced to privatize
Despite the absence of the authorization, the munucipality founded the Diyar Company in 2005.Baydemir said the Diyar Company had founded many establishments and workshops in the city in a few months and offered employment opportunities to more than 300 people. The government, however, asked for the privatization or abolishment of the company through a circular signed by the interior minister, with the justification that "the company was founded without the permission of the Cabinet."
"The government forced us to privatize the Diyar Company. The Justice and Development Party administration forces us to choose between hunger and identity," he said. Baydemir said that was the reason they issued a tender in January and transferred the shares of the company to Ali Karakaş and his partners for YTL 8 million. Baydemir complained about the AKP running Istanbul through companies and not letting them do the same.
Baydemir is the sole candidate from DTP
Baydemir, who has crossed swords with the government quite often during his five-year term, is the sole candidate from the Democratic Society Party, or DTP, in the mayoral race for Diyarbakır, due in March.
"We will win this election too," Baydemir said, adding that believes that his hand is strengthened by the fact that the Justice and Development Party, or AKP, has not yet announced its candidate. Baydemir described being forced to privatize the Diyar Company, as the only backward step during his term as mayor.
"They want us to solve our financial problem through the Provincial Bank and our share from the Treasury but these sources are not sufficient to treat our wounds. We want to be able to establish companies and run them just like Istanbul and other metropolitan municipalities," said Baydemir, explaining that the Diyar Company was functioning like an investment agency run by the civil service.
Baydemir said the pain of the global economic crisis is being felt even more in the poor cities of the East. "It is unavoidable for our firms to be more affected by the crisis as they are naturally unable to compete. The social state has become obsolete in Turkey anyway," he said.
"Social investments are going to decrease even more due to the crisis and the affiliation with the International Monetary Fund. The businessmen in our area also share these concerns," he said.
Baydemir also said many small businesses in Diyarbakır changed owners in the previous six or seven months or built new partnerships to overcome the current crisis.
Businessmen sharemayor’s concerns
Meanwhile Raif Türk, board chairman for the Foundation of Industrialists and Businessmen of Diyarbakır, or DİSİAD, commented on the privatization of the Dinar Company. "Despite everything, the important thing is the Dinar Company exists and continues to add to the city’s economy." Türk pointed that privatization affected the balance sheet of the municipality. "I cannot understand the Istanbul Metropolitan Municipality having the opportunity to establish companies while Diyarbakır is not allowed to do so." Türk said although they believe in the free market economy and support privatization it is important to have investments carried out in partnership with the state.
Istanbul Municipality owns 23 companies
Every metropolitan municipality in Turkey owns at least two companies with the exception of Diyarbakır. Istanbul Metropolitan Municipality, or IBB, owns 23, which operate in various sectors ranging from transportation to food. Beltur, İgdaş, Halk Ekmek and Kiptaş are the most known. The law for metropolitan municipalities allows them to build and operate the necessary facilities concerning their areas of duty. Those foundations are separate legal entities and have semi-commercial status while being subject to inspection of the local administrations.
Talking to daily Referans, Osman Baydemir said his is the only metropolitan municipality in Turkey that does not own any companies. Despite the fact that the province’s population has tripled in the last 15 years due to internal migration it is not permitted to receive funds from the private sector or from civil investment initiatives. According to the laws, a municipality can only run a private company with the consent of the interior ministry and the approval of the prime ministry. Baydemir claimed that despite the fact that the municipality has received the consent of the interior ministry, it was unable to get the approval of the prime ministry.
"Ömer Dinçer, the undersecretary at the Prime Ministry at the time, told us, ’We will not allow you to establish companies,’" he said adding: "Abdülkadir Aksu, the interior minister at the time granted the permission for it to be run by the metropolitan municipality, but the Prime Ministry rejected the application."
Munucipality's company forced to privatize
Despite the absence of the authorization, the munucipality founded the Diyar Company in 2005.Baydemir said the Diyar Company had founded many establishments and workshops in the city in a few months and offered employment opportunities to more than 300 people. The government, however, asked for the privatization or abolishment of the company through a circular signed by the interior minister, with the justification that "the company was founded without the permission of the Cabinet."
"The government forced us to privatize the Diyar Company. The Justice and Development Party administration forces us to choose between hunger and identity," he said. Baydemir said that was the reason they issued a tender in January and transferred the shares of the company to Ali Karakaş and his partners for YTL 8 million. Baydemir complained about the AKP running Istanbul through companies and not letting them do the same.
Baydemir is the sole candidate from DTP
Baydemir, who has crossed swords with the government quite often during his five-year term, is the sole candidate from the Democratic Society Party, or DTP, in the mayoral race for Diyarbakır, due in March.
"We will win this election too," Baydemir said, adding that believes that his hand is strengthened by the fact that the Justice and Development Party, or AKP, has not yet announced its candidate. Baydemir described being forced to privatize the Diyar Company, as the only backward step during his term as mayor.
"They want us to solve our financial problem through the Provincial Bank and our share from the Treasury but these sources are not sufficient to treat our wounds. We want to be able to establish companies and run them just like Istanbul and other metropolitan municipalities," said Baydemir, explaining that the Diyar Company was functioning like an investment agency run by the civil service.
Baydemir said the pain of the global economic crisis is being felt even more in the poor cities of the East. "It is unavoidable for our firms to be more affected by the crisis as they are naturally unable to compete. The social state has become obsolete in Turkey anyway," he said.
"Social investments are going to decrease even more due to the crisis and the affiliation with the International Monetary Fund. The businessmen in our area also share these concerns," he said.
Baydemir also said many small businesses in Diyarbakır changed owners in the previous six or seven months or built new partnerships to overcome the current crisis.
Businessmen sharemayor’s concerns
Meanwhile Raif Türk, board chairman for the Foundation of Industrialists and Businessmen of Diyarbakır, or DİSİAD, commented on the privatization of the Dinar Company. "Despite everything, the important thing is the Dinar Company exists and continues to add to the city’s economy." Türk pointed that privatization affected the balance sheet of the municipality. "I cannot understand the Istanbul Metropolitan Municipality having the opportunity to establish companies while Diyarbakır is not allowed to do so." Türk said although they believe in the free market economy and support privatization it is important to have investments carried out in partnership with the state.
Istanbul Municipality owns 23 companies
Every metropolitan municipality in Turkey owns at least two companies with the exception of Diyarbakır. Istanbul Metropolitan Municipality, or IBB, owns 23, which operate in various sectors ranging from transportation to food. Beltur, İgdaş, Halk Ekmek and Kiptaş are the most known. The law for metropolitan municipalities allows them to build and operate the necessary facilities concerning their areas of duty. Those foundations are separate legal entities and have semi-commercial status while being subject to inspection of the local administrations.