Turkey's energy chief quits

ANKARA, Turkey -- Turkey's Energy Minister Cumhur Ersumer has resigned amid "baseless accusations" of involvement in illegal tenders.

The resignation on Friday is the first ministerial resignation after weeks of speculation surrounding an investigation into energy tenders, dubbed 'Operation White Energy.'

The Istanbul ISE-100 surged 15 percent on news of Ersumer's resignation and an announcement that a $10 billion rescue package from the International Monetary Fund and World Bank was possible.

Traders hope Ersumer's resignation will help stave off further political instability and help restore financial confidence.

Prime Minister Bulent Ecevit had warned on Wednesday that the inquiry could imperil his delicate left-right coalition.

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But some fear it could open political confrontation between the different parties in Turkey.

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Ersumer is the first political victim of Turkey's financial crisis which has seen 40 percent knocked off the value of the country's currency, the lira, since February.

The minister, who is a member of the Motherland Party, denied all allegations against him during a 40-minute press conference on Friday.

He said: "I presented my resignation to my party leader as of yesterday.

"But the decision is for the leaders. It is not possible for me...to work in peace at the energy ministry."

He added: "I very much regret that I have been targeted by such baseless accusations. In particular (they) picked out three or four projects while there are more than 300 projects handled by my ministry."

The markets had already witnessed a seven percent leap in anticipation that the minister would resign.

Fifteen people were charged by an Istanbul prosecutor this week, including former senior energy ministry officials, but Ersumer had avoided any indictment because of ministerial immunity.

Ecevit said on Friday that Ersumer was willing to have this immunity lifted to face allegations.

In a written statement after Ersumer's resignation, he said: "Ersumer not only resigned but also said that he would demand his parliamentary immunity be lifted if he faces a request for a case to be opened.

"With this decision Ersumer has shown his self-confidence."

Prosecutor Cevdet Volkan said he could submit evidence to parliament about the former minister if requested.

Several senior officials have been dismissed since the crisis broke in February, but Ersumer is the first politician to fall.

Ecevit and his president Ahmet Necdet Sezer had a public disagreement over the speed of corruption reform in February, triggering the financial and political crisis.

Ersumer's resignation follows meetings earlier in the day between Ecevit and Devlet Bahceli, leader of the Nationalist Action Party (MHP) and Mesut Yilmaz, leader of the conservative Motherland Party (ANAP).

The ANAP is the smallest party in Ecevit's coalition and friction has been running high between the parties over corruption issues.

Ecevit played down any fears of splits saying the issue "has never been a problem within the coalition government."

The Turkish Government
The Turkish Prime Minister's Office

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