Major Quota Operation in Sugar Market Across 8 Provinces
· Bloomberg HT
A simultaneous police operation was launched in 8 provinces targeting 25 companies identified for illegally invoicing starch-based sugar beyond their quotas.
Simultaneous Operation in Eight Provinces
A large-scale judicial investigation has been initiated against firms engaged in the production and trade of starch-based sugar. The operation, coordinated by the Istanbul Chief Public Prosecutor's Office Organized Crimes Investigation Bureau, was carried out by the Istanbul Provincial Police Department's Financial Crimes Branch Directorate. The audits were based on joint field inspections by the Ministry of Agriculture and Forestry's Sugar Department Presidency and the Tax Inspection Board Presidency. Legal proceedings have officially commenced against businesses that violated legal regulations and disrupted domestic market balances.
Quota Violation and Misleading Invoicing
Technical and administrative investigations revealed that quotas set by the Sugar Law were exceeded. Justice Minister Akın Gürlek made the following statement regarding the matter:
"As a result of the audits by the Ministry of Agriculture and Forestry's Sugar Department Presidency and the investigations by the Tax Inspection Board Presidency; it has been determined that some firms producing and trading starch-based sugar have violated the quota and domestic market sales limitations set by the Sugar Law, releasing products classified as starch-based sugar, which should not be supplied to the domestic market. Investigations have also revealed that the true nature of some products was concealed by invoicing them under names such as 'maltodextrin', 'glucose', 'starch', 'fructose', and similar; and that there were discrepancies between the product shown on the invoice and the product actually delivered."
Judicial Investigation into Twenty-Five Companies
As part of the investigation, police teams conducted simultaneous raids at designated locations early in the morning. Justice Minister Akın Gürlek provided the following information regarding the scope of the operation:
"In 8 provinces centered in Istanbul; searches and seizure of documents were carried out at 26 addresses belonging to 25 companies in Istanbul, Kocaeli, Sakarya, Ankara, Konya, Izmir, Gaziantep, and Adana; and 47 suspects identified as company executives have been summoned for statements as part of the investigation. The investigation is being conducted multi-faceted and meticulously on charges of Trading Spoiled or Altered Food or Medicine, tax evasion under the Tax Procedure Law and issuing or using misleading documents in terms of content, forgery of private documents, and price manipulation."
Legal Follow-up in the Sugar Market
Officials emphasized that there will be no leniency towards irregularities that create unfair competition in the agricultural industry and risk consumer health. As part of the operation, all past commercial ledgers, shipping receipts, and digital records of the companies have been subjected to detailed examination. While the proceedings for the 47 company executives summoned for statements continue at the police department, efforts are being intensified to identify other intermediary firms involved in the chain of fraudulent invoicing. It was reported that the inspections will continue with determination to maintain the market supply balance across the sector.