It is wrong to issue decrees that will confuse investors instead of taking steps to ensure that the new Turkish Commercial Code (TCC) functions properly. The parenthesis provision on independent administrative authorities is also wrong.

The steps the government has taken upon the authority granted by the Turkish Grand National Assembly (TGNA) to issue decrees with the aim of restructuring public services makes me think, "What a contrast!" In the previous legislative year, the TGNA took a revolutionary step and amended the irredeemable TCC. Now, with another authorization by the TGNA, the government has issued decrees to initiate comprehensive arrangements regarding public administration. As the decrees keep coming, I am beginning to think, "What was the purpose of the TCC then?" The recent arrangement involving the independent authorities on top of it makes me think "What a contrast!"

It appears that the public administration is trying to add all of the items on its agenda to decree articles without thinking them through before the authorization terminates. This is my impression. And just as in the case with the central bank, the actions of which cannot be understood by the market actors, a public administration who actions cannot be understood by foreign investors is unacceptable. This is what is going on with independent authorities.

On 17 August, in the middle of the month of Ramadan, the government issued a decree regarding the principles and the organization of the Ministry of European Union, which it is working to establish. This decree amended the Law on the Founding Principles of Ministries. And with a parenthetical provision, it was judged that ministers shall be authorized to supervise all activities and operations of independent administrative authorities. This way, the activities and operations of administrative authorities that were in effect independent have been opened to political supervision. Please note that I am talking about not administrative but political supervision. Let me elaborate.

Independent administrative authorities such as the Capital Markets Board, the Banking Regulation and Supervision Agency, the Competition Board, the Energy Market Supervision and Regulation Agency, were granted independence by the TGNA via the decision of the political authority. It is the political authority that decides which operations are administrative and technical and ensures that such operations are carried out without prejudice. This is the first point to state. Second, judicial control of the activities and operations of the independent administrative authorities was already in effect. Moreover, these authorities were regularly supervised by constitutional bodies such as the Court of Accounts or the State Supervisory Council. In other words, there was no disorder or lack of supervision. Third, the officials of these authorities were assigned by governments, not by aliens. It is also governments that elect the executors. Fourth, in principle it is possible to open a formal investigation of officials of independent authorities. However, discharging an official with this method is even harder than discharging a ministry undersecretary. The principal objective is to ensure the stability of administrative-technical practice.

Then, what is the problem? Why is the political committee, which finally amended the TCC and brought a revolution to the corporate sector, now uncomfortable with the technical decisions of independent administrative authorities based on the daily administrative course? This is what we miss due to the ongoing fuss. What is troubling is that we cannot know why the current set of rules according to which the independent administrative authorities act disturbs the government. If this set of rules is wrong, it should be changed, by all means. However, the aspects that should be changed must be known; not by me, but by those planning investments in these respective areas. It is the political authority that will decide what decision is administrative and technical. The defects will be identified and remedied, and the relevant independent authority will continue operating independently relying on the new set of rules. This will end the problem. But you cannot say that any decision that the minister does not like can be supervised any time on demand. This would damage stability.

It is wrong to issue decrees that will confuse investors instead of taking steps to ensure that the new TCC functions properly. The parenthesis provision on independent administrative authorities is also wrong.

Maintain the stability; let Turkey grow. Was this not the election slogan?

This commentary was published in Radikal on 02.09.2011