Turkish PM Erdogan under fire for talks with Kurdish rebel group PKK



ISTANBUL // Fresh from a tour of three countries of the Arab Spring, Recep Tayyip Erdogan, Turkey's prime minister, has come under pressure at home for ordering secret talks between the country's intelligence service and Kurdish rebels, sworn enemies of the Turkish state.

"Come on and apologise to the people like a man," Kemal Kilicdaroglu, the opposition leader in Ankara, told Mr Erdogan in remarks posted on his party's website yesterday. Meanwhile, Tanju Ozcan, a deputy from Mr Kilicdaroglu's Republican People's Party (CHP) filed a criminal complaint against leading intelligence officials, while another CHP official called for Mr Erdogan to resign.

Devlet Bahceli, the leader of the right-wing Nationalist Movement Party (MHP), Turkey's second biggest opposition group after the CHP, said talks between the intelligence service and rebels were "shameful". He accused Mr Erdogan's government of "conducting secret negotiations with terrorists that feed on blood".

The barrage of criticism came after Mr Erdogan's government confirmed that leading members of the National Intelligence Organisation (MIT) had held confidential talks with top representatives of the Kurdistan Workers' Party (PKK), a rebel group that has been fighting for Kurdish self-rule since 1984. Tens of thousands of people have died in the still unresolved conflict, which forms Turkey's biggest domestic problem.

A voice recording of talks between Hakan Fidan and Afet Gunes, two deputy MIT chiefs at the time, and Sabri Ok and Mustafa Karasu of the PKK was posted on the internet last week. It remained unclear where the talks took place: some reports say it was held under Norwegian mediation in Oslo, others say the venue was northern Iraq. The exact time of the meeting was unknown, although references in the recording suggest it constituted the fifth round of talks that were held in 2009 and 2010.

The recording was taken off the internet shortly after it was published, but Turkish newspapers printed transcripts of the talks.

Last year, Mr Erdogan confirmed that state officials were holding talks with Abdullah Ocalan, the jailed PKK leader, on the prison island of Imrali in the Sea of Marmara west of Istanbul. But the recording marked the first time that contacts between high-level intelligence officials and members of the active PKK leadership came to light. Mr Fidan, one of the MIT officials who participated and introduced himself as Mr Erdogan's special envoy in the recording, has since been made the MIT director.

Cemil Cicek, the speaker of Turkey's parliament, compared the secret PKK talks with efforts by the governments of the United Kingdom and Spain to end long-running disputes in Northern Ireland and the Basque country.

The secret talks shed light on a double strategy followed by Mr Erdogan's government in its efforts to convince the PKK to lay down its arms. Even as Ankara keeps up the military pressure on the PKK with air strikes on rebel positions in northern Iraq and threats to stage a large-scale intervention with ground troops into the neighbouring country, officials are engaged in behind-the-scenes efforts to cool down the conflict by negotiation, or even end it altogether.

Some news reports have suggested that the secret talks opened the way for a PKK ceasefire last year that was extended until parliamentary elections in Turkey this past June. Fighting has escalated in recent weeks.

The source of the leak is not known. Mr Erdogan hinted that Israel may be behind the publication of the recording. "We know certain circles have targeted Mr Hakan" Fidan, Mr Erdogan told reporters. He was referring to an Israeli government official who accused Mr Fidan of pro-Iranian tendencies when he became MIT chief last year.

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Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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AT4 Ultimate, as tested

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Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
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COMPANY PROFILE
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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