Turkey’s Red Crescent can now become indebted by taking loans from banks. The Red Crescent will be able to establish foundations and universities, as well as become partners with local and foreign private institutions and provide financing to entrepreneurs.
According to the news article of İsmail Arı from Birgün Daily, Turkey’s Red Crescent can now become indebted by taking loans from banks. The Red Crescent will be able to establish foundations and universities, as well as become partners with local and foreign private institutions and provide financing to entrepreneurs.
In recent years, Turkey’s Red Crescent, which has been on the agenda with corruption scandals, organized a statute congress. During the congress, many changes were made that would pave the way for the looting of the Red Crescent, which has become a holding under the name of The Red Crescent Investment Holding and established 9 separate companies in 2019. With the new “Turkey’s Red Crescent Association Statute” adopted at the Red Crescent Statutes Congress held in Ankara yesterday, many powers of the Red Crescent General Assembly were transferred to the Red Crescent Board of Directors. It is stated that this transfer of authority paved the way for the extension of the term of Red Crescent Chair Kerem Kınık, whose third term will end in April 2022.
AUTHORITY TO BORROW MONEY
A remarkable change was made in the statute under the title of “Borrowing Procedures of the Red Crescent”. According to the amendment, “The Red Crescent may borrow money with the decision of the Headquarters Board of Directors, if needed, in order to realize its purpose and carry out its activities. This borrowing can be done in terms of goods and services on credit, as well as in cash. It is stated that this change paved the way for the Red Crescent to borrow money and take loans from banks.
IT CAN ENGAGE IN PARTNERSHIPS
It is stated that the Red Crescent can establish foundations and engage in partnerships and collaborations with local and foreign private institutions. On the other hand, it has been reported that it is against the founding principles of the Red Crescent to establish partnerships with private companies, to engage in commercial activities, and to have local or foreign companies and persons as partners in its assets.
Another change in the draft statute paves the way for the establishment of a foundation university under the name of Red Crescent and which is paving the way of transferring the real estate properties of the Red Crescent to the foundation to be established.
With this change, it is stated that “To open a foundation university will require the transfer of at least 50 percent of the resources of the Red Crescent to the university foundation,” and this may lead to the bankruptcy of the institution. In addition, it was claimed that the last remaining resources of the Red Crescent, the real estate properties, will either be transferred to the foundation or pledged to banks.
This change in the statute brought to mind the Turkish Aeronautical Association’s process of establishing a university, which was followed by its bankruptcy.
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According to the news article of İsmail Arı from Birgün Daily, the new regulation states that “The Red Crescent, which is sustained by donations and aids, provides microfinance to entrepreneurs and business managers”. However, it is stated that the Red Crescent’s financing to businesses or social entrepreneurs is against the founding principles of the Red Crescent.
The draft statute will come into effect after the approval of the President and AKP Chair Recep Tayyip Erdoğan.