"Measures Against Misuse in the Concordat: Tough Moves from the Treasury"

New Regulations in the Concordat Process

The Ministry of Treasury and Finance's Public Oversight Authority (KGK) has imposed strict sanctions against auditing firms that abuse the concordat institution. In the audits conducted, the operating licenses of 10 auditing firms and 13 responsible auditors were revoked, and additionally, a total of 82.1 million lira in fines was imposed on 14 auditing firms.

Critical Statements from Minister Şimşek

Minister Mehmet Şimşek made evaluations regarding the matter, stating that KGK is meticulously carrying out the proceedings related to concordat audits. Şimşek said, "We are resolutely carrying out all necessary efforts to strengthen the penalties for companies and intermediaries that abuse the concordat institution. We are conducting a joint study with our Ministry of Justice," he said.

What is Concordat?

Companies that are unable to pay their debts or are at risk of being unable to do so can request concordat in order to avoid bankruptcy. This process is regulated within the framework of the Execution and Bankruptcy Law.

Supervision Processes and Preliminary Projects

Companies requesting concordat prepare preliminary projects, which must be audited by independent auditing firms authorized by KGK. After the audit, it is necessary to prepare a "reasonable assurance report" to be submitted to the court.

Status of Audits and Imposed Fines

In its investigations, KGK found that many concordat audits had not been reported to the authority. During the 2021-2025 period, there were a total of 5,293 concordat requests, while it was determined that only 2,083 of these had been reported to the authority. It was observed that 87% of the audits were conducted by only 16 auditing firms.

Operating Licenses and Administrative Regulations

As a result of the penalties imposed on the auditing firms, KGK revoked the operating licenses of 10 auditing firms and 13 responsible auditors. Additionally, the concordat audit authority of 1 auditing firm was suspended for 2 years, while a total administrative fine of 82 million 119 thousand 151 lira was imposed on 14 auditing firms. KGK also carried out administrative regulations for this process, deciding that concordat audits would only be conducted by authorized firms.