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Billions of liras in European loans to the Istanbul Metropolitan Municipality (IBB) under Mayor Ekrem Imamoğlu were siphoned off into unrelated projects and companies tied to a bribery network, according to a detailed investigation by Türkiye’s Banking Regulation and Supervision Agency (BDDK).
The report, prepared at the request of the Istanbul Chief Public Prosecutor’s Office and released on Wednesday, alleges that as much as TL 38.6 billion ($1.3 billion) was misused between 2019 and 2025.
The BDDK findings indicate that of the TL 66 billion in foreign project loans secured by the municipality during Imamoğlu’s tenure, more than half failed to reach their intended purpose. Instead, large portions were funneled into unrelated spending, debt repayments, and direct transfers to individuals and corporations under investigation for corruption.
According to the report, TL 18.1 billion of foreign loan inflows were transferred straight to company or personal accounts.
An additional TL 9.7 billion was transferred into IBB’s general accounts and mixed with other funds before being rerouted through a series of money transfers, which investigators said made tracking their final destination impossible.
The largest share, TL 38.6 billion, was deemed to have been misused. Of this, TL 20.1 billion was transferred to foreign financial institutions, sometimes to service old loans rather than finance new projects, while TL 14.5 billion was allocated to IBB’s operational expense accounts.
Another TL 3.9 billion was used to cover taxes, social security payments and utility bills.
Prosecutors allege that several companies owned by senior members of a bribery and kickback ring tied to the municipality received significant sums. The report lists firms linked to Murat Gülibrahimoğlu, Adem Soytekin, Ali Nuhoğlu, Murat Kapki, Hüseyin Köksal, Ertan Yıldız, Emrah Bağdatlı and Mustafa Nihat Sütlaş among the beneficiaries.
Financial records uncovered during the investigation show huge, unexplained deposits into the accounts of individuals identified as part of the network. These include TL 4.4 billion traced to fugitive businessperson Gülibrahimoğlu, as well as hundreds of millions linked to others under scrutiny.
Billions in foreign funding
Between 2019 and 2025, the IBB secured 1.856 billion euros ($2.16 billion) and $1.588 billion in foreign loans, primarily from European development institutions. While intended for long-term infrastructure and urban development projects, the BDDK concluded that a significant portion was either diverted or misapplied.
The agency’s “IBB Group Account Transactions” report forms the centerpiece of the prosecutor’s probe, which has already led to arrests of individuals accused of managing secret “money chests” for what investigators call a criminal organization operating within municipal structures.
The allegations strike at the heart of Istanbul’s finances and have added new pressure on Imamoğlu, one of the most prominent figures in Türkiye’s opposition, who is currently in jail on corruption charges. While he has dismissed previous corruption accusations as politically motivated, the BDDK’s findings suggest systemic irregularities that prosecutors argue go beyond routine mismanagement.
The revelations could also strain relations with European lenders, who provided the bulk of the loans under investigation. Questions are expected to arise about oversight mechanisms and whether loan conditions were adequately enforced.
With billions of liras unaccounted for, Turkish authorities say the case highlights the risks associated with foreign-financed municipal projects and underscores the need for tighter scrutiny. Prosecutors are expected to pursue further indictments as the investigation expands.
