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Bulletin de liaison et d'information - Institut kurde de Paris

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Revue <strong>de</strong> Presse-Press Review-Berhevoka Çapê-Rivista Stampa-Dentro <strong>de</strong> la Prensa-Basm Öz<strong>et</strong>i<br />

TIME AUGUST4,2003<br />

EURO<br />

P E<br />

He's accused of <strong>de</strong>frauding major Western firms,<br />

skirting banking regulations and libeling the<br />

Prime Minister. What Cern Uzan' s troubles say<br />

about the state of Turkey today<br />

By ANDREW PURVIS ANKARA<br />

LIGHTLYTANNED AND GALVANIZED BY<br />

his daily workout, Cern Uzan, 42, is<br />

relaxing in a trim blue business suit at<br />

his swanky party headquarters in<br />

downtown Ankara. Behind him is a<br />

wall-length map of Thrkey,lit up with<br />

red flags of towns and villages he has visited<br />

in his first year as a barnstorming politician.<br />

He is in an expansive mood. "I believe in certain<br />

values in life;' he says. "I want to s<strong>et</strong> an<br />

example of public service:' Politics, in fact, is<br />

a welcome pursuit for Uzan, who is lea<strong>de</strong>r of<br />

the Youth Party. But he is also scion of one of<br />

Turkey's richest and most controversial business<br />

empires. And business for the Uzan<br />

group is not going so well.<br />

In June the government of Recep<br />

Tayyip Erdogan seized two major Uzanowned<br />

utilities in southern Thrkey for<br />

breaching energy regulations,and in July<br />

the country's in<strong>de</strong>pen<strong>de</strong>nt banking regulator<br />

took over the Uzans' flagship bank, !mar<br />

Bank, noting it was "not me<strong>et</strong>ing its responsibilities<br />

and posed a danger to the banking<br />

system:' The five Uzan TV stations were<br />

briefly or<strong>de</strong>red off the air in July for violating<br />

broadcasting laws forbidding media owners<br />

from using their n<strong>et</strong>works to promote their<br />

own political or business interests, and Cern<br />

himself is barred from leaving the country<br />

because of the bank imbroglio.<br />

And that's just the family's troubles in<br />

Thrkey. In New York, a judge could rule as<br />

earlyas this week on a fraud and rack<strong>et</strong>eering<br />

case brought against the Uzans by Motorola<br />

and Nokia. The mobile-phone giants<br />

allege that the Uzans lured them into loaning<br />

$2.7 billion in cash and equipmentto an<br />

Uzan-contrölled company, Telsim, and that<br />

the family had no intention of repaying the<br />

loans. Hundreds of millions of dollars of the<br />

Uzans' overseas ass<strong>et</strong>s have been frozen<br />

pending the ruling, which if it goes against<br />

them and is upheld on appeal could cost the<br />

family $9 billion. "The era of the Uzans' untouchability<br />

is over;' says Ism<strong>et</strong> Berkan,<br />

chief political columnist of Radikal, a leading<br />

left-wing newspaper owned by the<br />

Dogan group. "Their empire is unraveling:'<br />

The clash marks a watershed in Thrkey.<br />

If the crackdown is successful, the government<br />

will claim a major victory in the fight<br />

against Turkey's old way of doing business.<br />

That could also help accession talks with the<br />

European Union, which has been calling for'<br />

reforms. And with George W. Bush weighing<br />

in on Motorola's behalf last year, redress in<br />

the U.S. case would please Washington,<br />

with which Ankara is eager to patch up relations<br />

after the Iraq war. Failure, however,<br />

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