Allegations of Losses in Diyanet Foundation Funds and Controversy Over Contradiction with Institution's Fatwa

It is claimed that the Presidency of Religious Affairs evaluated donations and zakat funds collected for Palestine and other emergency regions in investment funds, resulting in a 48 percent loss during the process. While it was stated that not all the money could be withdrawn due to the fund crisis and official procedures, the situation drew criticism on the grounds that it contradicted a past fatwa issued by the High Council of Religious Affairs.

It was stated that following fluctuations in the investment funds, an exit from the funds was made upon the instructions of Safi Arpaguş, the head of Diyanet İşleri, but this panic move resulted in a 48 percent investment loss. It was noted that the amount that could be withdrawn from the fund was transferred to a participation bank, while Diyanet sources argued that the money was invested in a different fund and no loss was incurred. On the other hand, it was reported that there was a significant decrease in the fund's participation shares and that the foundation could only rescue half of the money, while the other half remained trapped in the fund.

The repercussions of the process also found a place in the political world. Anahtar Party Deputy Chairman Özcan Gündör met with Turkey Diyanet Foundation (TDV) President İzani Turan and confirmed that Palestine and emergency aid funds were evaluated in funds. The General Directorate of Foundations' recommendation that the money should not melt against inflation was cited as the justification for this step.

Evaluating the funds that need to be delivered to those in need in risky investment vehicles brought to mind the fatwa of the High Council of Religious Affairs dated March 23, 2022. The council decision stated that it was not permissible for charitable organizations to subject zakat property to transactions for the purpose of generating income. While the institution's engaging in financial transactions despite this rule and the allegations of heavy losses caused public reactions, an official and detailed statement regarding the scale of the loss has not yet been made from the Diyanet front.