Swedish and US prosecutors investigate corruption complaint involving Erdoğan’s son

Anti-corruption officials in the United States and Sweden are investigating a complaint of bribery by a Swedish subsidiary of a US company that is also named Bilal Erdoğan, the son of Turkish President Recep Tayyip Erdoğan. According to an exclusive report by Reuters, the company promised to pay tens of millions of dollars in bribes if Bilal Erdoğan helped the company to secure market dominance in Turkey for a breathalyzer it manufactures.

Communications and documents seen by Reuters, as well as a source with knowledge of the company’s proposed bid, also provided details. No kickback was ultimately paid to Bilal Erdoğan, according to an individual complaint filed with the authorities and reviewed by Reuters. Swedish company Dignita Systems AB abruptly abandoned the project late last year, according to two people familiar with the matter and company correspondence seen by Reuters. Dignita’s American owner confirmed the suspension of the project to Reuters, saying he had discovered “potentially alarming practices” in Turkey and had fired several people involved.

According to the complaint, the company’s plan was for President Erdoğan’s government to pass regulations that would boost sales of Dignita’s product. This product is a dashboard breathalyzer that locks the ignition if the driver is drunk. Dignita allegedly promised to pay tens of millions of dollars in lobbying fees through a shell company to two organizations where Bilal Erdoğan is a board member, in exchange for 10 years of commercial privileges in the sale of their products. Although the attempt was blocked in September, according to Reuters, it provides an indication of how investors view Bilal Erdoğan as a key person to gain access to President Erdoğan. The person familiar with the case said the second part of the strategy, which was only discussed verbally, was for the shell company to make large donations to two institutions where Bilal Erdoğan is a board member, Ibn Haldun University and the TÜGVA Youth Foundation.

Bilal Erdoğan’s name has been mentioned in newsworthy allegations in the past. One of them was that in 2016 Italian prosecutors had launched a money laundering investigation against Bilal Erdoğan on suspicion of smuggling cash into the country without declaration. Erdoğan denied the charges and Italian prosecutors withdrew the investigation, citing a lack of evidence. Another accusation came last year when Russia claimed to have evidence that President Erdogan’s son was profiting from cross-border oil trade with Daesh in Syria. However, Russia has refused to share this evidence.