Legal Unit - The Turkish Parliament has passed an omnibus law expanding the powers of the State Supervisory Council (DDK), despite previous rulings by the Constitutional Court (AYM) that had annulled similar regulations. The law, numbered 7539, was published in the Official Gazette on Feb. 4 and has sparked criticism for effectively reinstating measures deemed unconstitutional. Additionally, the law extends the authority of the Savings Deposit Insurance Fund (TMSF) to act as a trustee until 2030, a practice that was initially introduced during the state of emergency following the 2016 coup attempt.
Expanded powers for the State Supervisory Council
The omnibus law significantly broadens the DDK’s jurisdiction. Five articles (1, 2, 3, 6, and 7), which had been previously withdrawn due to opposition objections, were reinstated in the legislation. Under the new provisions, the DDK will now have the authority to audit foundations, cooperatives, and associations. Furthermore, DDK inspectors will be granted the power to suspend public officials from their duties.
The most contentious aspect of the law is its reinstatement of regulations previously struck down by the Constitutional Court. The AYM had ruled in both 2021 and 2024 that the DDK’s broad powers were unconstitutional. However, the new legislation effectively disregards these rulings by reintroducing similar provisions.
Overriding Constitutional Court rulings
The Constitutional Court had annulled key aspects of the DDK’s expanded authority in previous rulings:
- Case No. 2021/113 E, 2024/29 K (Feb. 1, 2024): The AYM ruled against the DDK’s authority over foundations, cooperatives, and associations.
- Case No. 2018/121 E, 2021/84 K (Nov. 11, 2021): The AYM struck down the provision allowing DDK inspectors to suspend public officials.
Return of the 1981 State Supervisory Council law
The new legislation effectively restores the provisions of Law No. 2443, which originally governed the DDK but was repealed in 2018 through Presidential Decree No. 703. At that time, the DDK’s responsibilities were redefined through a presidential decree. With the latest legal changes, the annulled decree provisions have now been effectively turned into law.
Legal experts believe the main motivation behind this move is the Constitutional Court’s prior annulment of the presidential decree regulating the DDK’s powers.
Extension of TMSF’s trustee powers until 2030
Another significant provision in the omnibus law is the extension of the TMSF’s authority to act as a trustee for an additional five years. Initially introduced under the state of emergency declared after the 2016 coup attempt, this regulation has been repeatedly extended, making it a permanent fixture of Turkish governance. Previously set to expire on July 31, 2024, the trustee authority has now been extended until 2030.
This move effectively makes what was originally a temporary state of emergency measure a permanent policy.
