AKP-led municipality buys unprofitable water company for $26m
The expensive purchase of a water company generating low profit is an indicator of the extravagant, wasteful spending that occurred in the İstanbul municipality when it was governed by the ruling Justice and Development Party (AKP).
The ruling Justice and Development Party (AKP)-led Istanbul Metropolitan Municipality (İBB) purchased a water company in 2016 at the cost of 75 million TL (then-valued at $26.8 million) even though the company only brought in one million TL in profits annually, according to İBB city council member Tarık Balyalı of the main opposition Republican People's Party (CHP).
“The machines went out of use and after awhile were sold for less than their value. The water preparation facility and buildings were renewed due to insufficiency. In other words, only 18 spring water sources with a daily capacity of 3-4000 tons were purchased for 75 million TL,” Balyalı told the daily Sözcü.
The costly purchase reflects the extravagant spending habits of the İBB while under AKP rule, which lasted between 2002 and 2019.
“The income statements of the company, which earned an average of one million TL a year in profit, are an indicator of how high the İBB's payment was,” Balyalı said.
Balyalı claimed that the former owners of the Güven Su company were relatives with high-ranking AKP members.
“Furthermore, it is alleged that they purchased another water company at the very small price of 5-6 million TL in violation of the competition clause in the transfer protocol made with the former owners of the company,” Balyalı said.