"Sanctions That Benefit" - Growing Corruption Scandal in Turkey Involves Iran – ‘Gas for Gold’

"Sanctions That Benefit" - Growing Corruption Scandal in Turkey Involves Iran – ‘Gas for Gold’.HT: UskowiOnIran.

The growing government corruption scandal in Turkey has led to resignations of three key ministers and calls for the resignation of Prime Minister Erdogan, who on Wednesday replaced half his cabinet.

The scandal partly involves suspects with close ties to Iran. An Iranian businessman living in Turkey, Reza Zarrab (aka Riza Sarraf) was arrested last week in Istanbul and charged with money laundering and bribing Turkish officials. Zarrab is believed to have facilitated the payments for oil and gas imports from Iran with gold bullions worth tens of billions of dollars sent via couriers to Tehran in a scheme to circumvent sanctions. In the process, Zarrab is believed to have bribed senior Turkish officials to enable his operations. The sums of “commission” bribes are said to be in tens of millions of dollars.

The so-called “gas-for-gold” scheme was designed to circumvent the sanctions limiting financial transactions with Iran. This is how the scheme was designed: Iran exported oil and gas to Turkey. The Turkish government opened an account at Istanbul’s Halkbank to pay for Iranian imports. Zarrab forms Safir Gold Company in Turkey. The company opens a bank account at Halkbank. The Iran funds were then transferred through intra-bank transactions to Zarrab’s company account. Zarrab uses the funds to procure gold bullions globally and imports them through his Turkish-registered company to Turkey. He then sends the gold through couriers either directly or through Dubai to Tehran. The Turkish media repots that some $13 billion worth of gold was sent to Iran through the “gas-for-gold” scheme.

To facilitate his operations, Zarrab reportedly bribes sons of three key ministers, those of finance, interior and environment, handsomely. The son of finance minister is said to have received $50 million in just more than a year. The sons have ben arrested on bribery charges. Suleyman Aslan, the CEO of Halkbank, was also arrested on bribery charges. The police found $4.5 million in cash hidden in shoeboxes during the search of the house. (balkaneu.com/Trend/Haberturk, 19-24 December)

Meanwhile, Zarrab reportedly tells the Turkish prosecutors that his “boss” and contact in Tehran was Babak Zanjani, the controversial Iranian businessman and head of the Sorinet Group business conglomerate. (Haberturk, 21 December)

Zanjani became notoriously famous as the most successful “sanctions broker,” selling Iranian crude oil in the black market. He obtained the oil through an arrangement with Iran’s Ministry of Oil, which had allocated 20% of Iran’s oil exports to be handled by “private” firms. In Zanjani’s case, his private firm was reportedly a front company for IRGC’s Quds Force that had obtained a large allocation of the private oil export license from the oil ministry. In the process, Zanjani became a billionaire since the inception of oil sanctions in 2012, and was now identified by Zarrab as the boss in “gas-for-gold” scheme in Turkey.

On Thursday, Zanjani denied involvement in Turkey's corruption scandal or “gas-for-gold” scheme, saying he had met Zarrab only few times, adding, “I was not aware of his activities.”

"We (Zanjani and Zarrab) did not carry out any common business," Zanjani said. “If Zarrab had done any illegal business, I would not be responsible for that.” (Trend, 26 December)

In January 2013, Turkish police inspecting a private jet at Istanbul airport found 320 gold bars worth some $30 million. Turkish media have identified Zanjani as the passenger on board, ready to depart for Dubai. A Zarrab (aka Sarraf) would then intervene with the police and the aircraft is allowed to take off. This is the same Zarrab involved in the current scandal. A number od senior Istanbul police officials have been arrested this week on charges of bribery and corruption. (balkaneu.com/23 December)

Meanwhile in Tehran, 12 MPs asked the Judiciary officials to question Zanjani in relations to the growing scandal in Turkey. Zarrab remains under custody in Istanbul. The prosecutors as part of their on-going investigations have confiscated his yachts and other high-value possessions. Zarrab, 29, set up his Safir Gold Company only in 2012, and within a year the company boasted the control of 46% of all Turkish gold exports. Previously, Zarrab was an employee at Al Nafees Exchange and Al Salam Exchange Center in Dubai. He is now married to Turkish famous singer Embru Gundes. (Haberturk, 21 December)Hmmm....As i said many times before all this happened because the Obama 'Admin' 'Allowed' it to happen.

More, Much more here:

As expected Obama will give BFF Turkey a waiver from sanctions, they 'only' import 45 percent of their oil from Iran and aid Iran avoiding sanctions. 

"Sanctions That Benefit" - Iranian gold stars in Turkish corruption scandal 

Great overview of 'events' here: 

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