Capital Markets Board of Turkey to sue executives of publicly traded company

Turkish media baron Aydin Dogan and three Dogan executives caused losses to Dogan-owned media companies Hurriyet Gazetecilik (HURGZ.IS) and Dogan Gazetecilik are to be sued by the Capital Markets Board said in a bulletin on its website dated September 25th, 2009.

The Capital Markets Board (SPK) accused four executives of Hurriyet Gazetecilik and Dogan Gazetecilik for intentionally causing losses by purchasing paper and publishing supplies from offshore companies. This action just followed the Finance Ministry's punishing fine of TL 3.76 billion ($2.53 billion) on Doğan Yayın Holding for evading tax regarding its accounts for a time period covering 2005, 2006 and 2007.

Beyond all ongoing discussions, from good governance point of view this situation seriously damaged and will damage investors who owns stock shares of Dogan Group companies. It is for sure that there are serious lessons to be taken from this unfortunate development.