Turkey detains defence firm Assan Group executives in military espionage probe

ANKARA (Reuters) -Turkish authorities have detained the owner and general manager of Assan Group, a defence and construction conglomerate, as part of a military espionage investigation, the Istanbul prosecutor’s office said late on Wednesday.

The prosecutor’s office said the two men — identified as company owner Emin Oner and general manager Gurcan Okumus — were being held on suspicion of military espionage and membership in the network of U.S.-based cleric Fethullah Gulen, which Ankara accuses of orchestrating a 2016 coup attempt.

Earlier this week, the Assan Group issued a statement denying reports it had received classified information on Turkish army procurements, describing them as “part of a defamation campaign”. Gulen, who died last year, denied any involvement in the 2016 putsch, but his movement was designated as a terrorist group by Turkey and has since been systematically dismantled within the country.

The prosecutor’s office added that searches were continuing at the two men’s homes and offices, while 10 companies operating under the Assan Group were placed under trustee management by the Savings Deposit Insurance Fund (TMSF).

Assan, founded in 1989, has operations in defence, construction, logistics and energy, and in recent years expanded into producing artillery ammunition and drone components. It has more than 1,000 employees, its website says. 

As part of the same investigation, Ismet Sayhan, a former CEO of Turkish defence firm MKE who later worked as legal counsel to Assan, was jailed pending trial on charges of “obtaining state security documents by fraud,” broadcaster NTV reported.

Following Sayhan’s detention on Sunday, the Assan Group denied media reports that it had received classified information on Turkish army procurements.

“All allegations that Assan Group unlawfully accessed or obtained confidential Defence Ministry or Armed Forces documents are baseless and part of a defamation campaign aimed at damaging our reputation,” it said on Tuesday.

Okumus is a former head of TUBITAK SAGE, a state defence research institute that develops munitions and missile systems.

“The investigation is continuing in multiple directions,” the prosecutor’s office said.

(Reporting by Ece Toksabay and Huseyin Hayatsever; Editing by Saad Sayeed and Hugh Lawson)