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2008 Assessment

Turkey: Integrity Indicators Scorecard

Turkey: Integrity Scorecard Report > Sub-Category: State-Owned Enterprises
Indicators		Score
67	Is there an agency, series of agencies, or equivalent mechanism overseeing state-owned companies?	100
68	Is the agency, series of agencies, or equivalent mechanism overseeing state-owned companies effective?	40
69	Can citizens access the financial records of state-owned companies?	100

Indicator and sub-Indicator Details

Is there an agency, series of agencies, or equivalent mechanism overseeing state-owned companies?

67: In law, is there an agency, series of agencies, or equivalent mechanism overseeing state-owned companies?

Score:

YES

Comments: The High Supervision Board (YDK), which belongs to the Prime Ministry, prepares the reports on the state economic enterprises, and submits them to the approval of the parliamentary committee (State Economic Enterprises Committee of the Grand National Assembly).

Following the amendment to Article 160 of the 1982 Constitution and the adoption of Law No. 5018, financial control of the social security institutions, special budget institutions and regulatory and supervisory institutions is under the supervision of the Audit Court.

References: 1982 Constitution Articles 160 and 165: [ LINK ]

Law No. 3346 Concerning the Regulation of the Oversight of the State Economic Enterprises by the Grand National Assembly: [ LINK ]

Decree No. 72 on the Establishment of the High Supervision Board: [ LINK ]

Law No. 5018 On Public Financial Control, [ LINK ]

Is the agency, series of agencies, or equivalent mechanism overseeing state-owned companies effective?

68a: In law, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies is protected from political interference.

Score:

YES

Comments: The board overseeing state-owned companies is affiliated with the Prime Ministry and the head and the members of the board are appointed by the Council of Ministers. The parliamentary committee is composed of politicians.

References: Decree 72, Articles 3 and 7: [ LINK ]

68b: In practice, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies has a professional, full-time staff.

Score:

100

Comments: The board overseeing state-owned companies is an established institution with its own professional and experienced staff.

References: Bulent Tarhan, Chef Inspector, Prime Ministry, Ankara, September 2008.

Atalay Ergüven, Chairman, Association for the State Supervision Personnel (DENETDE), Ankara, September 2008.

68c: In practice, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies receives regular funding.

Score:

100

Comments: The board overseeing state-owned companies, as a part of the Prime Ministry, receives a regular annual allocation from the budget.

References: Bulent Tarhan, Chef Inspectr, prime Ministry, Ankara, September 2008.

Atalay Ergüven, Chairman, Association for the State Supervision Personnel (DENETDE), Ankara, September 2008.

68d: In practice, when necessary, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies independently initiates investigations.

Score:

100

Comments: According to the Decree No. 72 the High Supervision Board has no authority to initiate an investigation. The Board controls the accounts on paper and does not conduct detailed investigations, unless it is necessary.

As far as the accounts of the state economic enterprises, the Parliamentary Committee can approve them (meaning no legal violation), conditionally approve (if there is violation or any investigation already started about the accounts) or disapprove (in the case of a legal violation) . The committee has to inform the prosecutor if there is a legal violation in the accounts. In practice, the committee basically performs the function of "whitening."

References: Sevgi Korkut, "Parlamenter Denetim Kapsaminda Kamu Iktisadi Tesebbüslerinin Denetlenmesi: TBMM KIT Komisyonunun Denetim Prosedürü ve KIT'lerin Denetiminde Gelecege Dönük Öngörüler" (Supervision of the State Economic Enterprises Within the Scope of Parliamentary Supervision: Supervision Procedures of the TGNA Committee on the SEEs and Insights about Future of Supervision of the SEEs) Yasama Dergisi, Issue 6 July-August-September 2007, www.yasader.org/web/yasama_dergisi/2007/sayi6/parlamenter_denetim_kapsaminda.pdf

Bulent Tarhan, Chef Inspector, Prime Ministry, Ankara, September 2008.

Atalay Ergüven, Chairman, Association for the State Supervision Personnel (DENETDE), Ankara, September 2008.

Decree No. 72 regarding the High Supervision Board: [ LINK ]

68e: In practice, when necessary, the agency, series of agencies, or equivalent mechanism overseeing state-owned companies imposes penalties on offenders.

Score:

100

Comments: According to Decree 72, the High Supervision Board has no authority to impose a penalty on offenders, it only reports to the parliamentary committee to seek approval or disapproval.

Bulent Tarhan, Chef Inspectr, prime Ministry, Ankara, September 2008.

Atalay Ergüven, Chairman, Association for the State Supervision Personnel (DENETDE), Ankara, September 2008.

Decree 72 regarding the High Supervision Board: [ LINK ]

Can citizens access the financial records of state-owned companies?

69a: In law, citizens can access the financial records of state-owned companies.

Score:

YES

Comments: Final accounts of the state economic enterprises that are reviewed by the parliamentary committee shall be published in the Official Gazette. However, these are not detailed financial accounts.

References: Law No. 3346 Concerning the Regulation of the Oversight of the State Economic Enterprises by the Grand National Assembly, Article 10: [ LINK ] /Metin.Aspx?MevzuatKod=1.5.3346&MevzuatIliski=0&sourceXmlSearch=.

69b: In practice, the financial records of state-owned companies are regularly updated.

Score:

100

Comments: This excludes those institutions which are subject to the provisions of the Law 5018 on Public Financial Administration and Control.

References: Sevgi Korkut, "Parlamenter Denetim Kapsaminda Kamu Iktisadi Tesebbüslerinin Denetlenmesi: TBMM KIT Komisyonunun Denetim Prosedürü ve KIT'lerin Denetiminde Gelecege Dönük Öngörüler"(Supervision of the State Economic Enterprises Within the Scope of Parliamentary Supervision: Supervision Procedures of the TGNA Committee on the SEEs and Insights about Future of Supervision of the SEEs) Yasama Dergisi, Issue 6 July-August-September 2007, www.yasader.org/web/yasama_dergisi/2007/sayi6/parlamenter_denetim_kapsaminda.pdf

Bulent Tarhan, Chef Inspector, Prime Ministry, Ankara, September 2008.

Atalay Ergüven, Chairman, Association for the State Supervision Personnel (DENETDE), Ankara, September 2008.

69c: In practice, the financial records of state-owned companies are audited according to international accounting standards.

Score:

100

Comments: Law No. 5018 especially requires these standards.

Bulent Tarhan, Chef Inspectr, prime Ministry, Ankara, September 2008.

Atalay Ergüven, Chairman, Association for the State Supervision Personnel (DENETDE), Ankara, September 2008.

69d: In practice, citizens can access the financial records of state-owned companies within a reasonable time period.

Score:

100

Comments: Citizens can only access the final accounts, which are published in the Official Gazette, and not the detailed financial records.

Bulent Tarhan, Chef Inspectr, prime Ministry, Ankara, September 2008.

Atalay Ergüven, Chairman, Association for the State Supervision Personnel (DENETDE), Ankara, September 2008.

69e: In practice, citizens can access the financial records of state-owned companies at a reasonable cost.

Score:

100

Comments: Citizen can access the reports through the Official Gazette or the Internet.

Bulent Tarhan, Chef Inspectr, prime Ministry, Ankara, September 2008.

Atalay Ergüven, Chairman, Association for the State Supervision Personnel (DENETDE), Ankara, September 2008.