No change of guard at top defense procurement body [SSM's M.Bayar leaving?]

[Baykuş]

No change of guard at top defense procurement body
BURAK BEKDİL

News reports on Turkish Undersecretariat for Defense Industries (SSM) chief Murad Bayar’s departure are denied as a ‘hoax’, according to sources


It has been widely speculated in recent weeks that the man who for the last decade has managed tens of billions of dollars’ worth of defense programs is finally departing. Reports in the Turkish media suggested that Murad Bayar, head of the defense procurement agency, the Undersecretariat for Defense Industries (SSM), would be appointed as Turkish ambassador to Ottawa, and be replaced by a Constitutional Court judge.

Bayar is not departing and speculations are pure speculations, sources close to Bayar’s office said. “Prime Minister Recep Tayyip Erdoğan has a perfect working relationship with Bayar, and he would be the first to block it even if Bayar wanted to quit,” a senior defense official said.


Bayar has been Turkey’s top defense procurement official for the last 10 years – the longest serving head of SSM. He has specifically implemented Erdoğan’s ambitious policy of substituting foreign-made weapons systems with indigenous, national systems. The current such programs involve drones, fighter jets, helicopters, missiles and rockets, numerous electronic systems, tanks and a rich menu of armored vehicles.


‘The undersecretary will not leave’

A close aide to Bayar said, “The undersecretary has no intention of leaving several ongoing programs unfinished. He will keep on personally reporting to the defense minister and the prime minister.” A senior official from a Western defense manufacturer said: “We have been alarmed by the news reports [about Bayar’s departure]. That would mean major delays and, perhaps, several mishaps in programs Turkish defense companies manage in partnership with Western technology suppliers, not to mention the big-scale international programs Turkey is a partner of.” Press reports have suggested Bayar would be replaced by Ibrahim Er, a member of the Council of State. Er, a close relative of Erdoğan, is a graduate of Giresun’s Education Institute and spent most of his career as a primary school teacher. In 2011, he was appointed general director of the Education Ministry’s primary education department.

June/20/2013

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What do you guys think;

Was the major, so far successful and to Turkey very important projects of SSM that ought to make the Turkish military very independent from foreign suppliers really initiatives of Erdogan - who, if I recall correctly, wasn't even in power when the projects even was put to paper back in the late 90's?

The Altay tank, MİLGEMs and TAI T-129 ATAK are some projects I could think of that goes back before Erdogan came to power. I do not want to turn this thread into politic matters, but I personally can't really take it when people take the credits for the work and effort of others. The only thing I can think of is that Erdogan might have OK'ed some steps of the projects and his government might have chosen to fund them economically, but that's not something he would have done out of his own goodwill/initiative but to serve the best interest of Turkey; in this case making sure that our military doesn't have to rely on foreign suppliers.

 

[-SINAN-]

Major reshuffle planned for Turkish defense industry 24 June 2013

Speculations are mounting that the Turkish government is planning a major reshuffle of its lucrative defense industry in the coming months, and to reduce the military's control over arms companies that receive huge amounts of state funding.
According to well-placed defense industry sources, engineer Murad Bayar, longtime head of the Undersecretariat for the Defense Industry (SSM), and general managers of some military companies will be replaced in the government's planned restructuring of the sector.

Though the SSM is part of the civil government, the military still influences the agency. This influence has been gradually reduced.

It is estimated that Turkey spends around $4 billion a year buying weapons.

The Foundation to Strengthen the Turkish Armed Forces (TSKGV) owns the majority of shares of 18 Turkish defense companies, including Roketsan, Havelsan and Aselsan as well as Turkish Aerospace Industries (TAI).

With no oversight on spending, these companies are not considered transparent. Their remaining shares belong to the SSM.

Under a Court of Accounts Law enacted in December 2010, defense companies that are partly owned by the TSKGV are not subject to audit by Court of Accounts inspectors -- despite the fact that the law subjected Turkish Armed Forces (TSK) spending to audit for the first time.

The TSK squashed an earler plan to privatize the defense industry, which the government said was inefficient, opaque and not managed under free market conditions, putting a burden on the Turkish economy.

Only Aselsan's 15 percent of the shares are sold on the market, while the remaining military companies are not publicly traded.

For over a year a plan to sell TSKGV-owned shares in TAI amounting to 20-25 percent of the company's stock has not materialized. But local defense industry sources are now saying that in the coming months about 20-25 percent of TAI's shares will offered to the public, reducing TSKGV's stake in TAI to 30 percent from 55 percent.

This is part of a government plan to gradually end the TSK's control over state-owned defense companies by the TSKG's shares in them.

In an April 2012 interview with daily Taraf daily, Bayar, who is responsible for 90 percent of arms purchases in Turkey, spoke of the plan to privatize the defense companies in a bid to make them more efficient. The defense companies would also be downsized, he said.

“The defense industry will be opened to competition. In certain fields it will be impossible for many companies to produce the same kinds of products. For example, TAI will remain the only actor in that sector. Otokar will be the only firm to manufacture tanks.”

Bayar said that some companies owned by military foundations would be forced to compete, or eventually face liquidation.

Turkish Minister of Defense İsmet Yılmaz told Zaman daily in April 2012 that the defense industry was going to open up to the private sector. Some smaller TSKGV firms would merge with private sector firms, terminate their operations or become private sector companies, he said.

The military's resistance, however, stalled his plans.

The ruling Justice and Development Party (AK Party) has curbed the military's power in politics over the years, but has been largely unable to touch its economic base.

It remains to be seen if the government will realize its plan to take over and privatize defense companies and ultimately dissolve the TSKGV.

The question remains whether the government wants to take over the companies in the interest of democratic governance and transparent management -- or control over the defense industry's huge budget.

Source: Major reshuffle planned for Turkish defense industry

 

[Baykuş]

Major reshuffle planned for Turkish defense industry ...

What do you guys think, is this good or bad news?

 

[-SINAN-]

What do you guys think, is this good or bad news?

Very good news indeed, As Bayar said; "that some companies owned by military foundations would be forced to compete, or eventually face liquidation.".

MKEK for instance they are a disgrace for Turkey. They should be more effective.

 

[Baykuş]

Very good news indeed, As Bayar said; "that some companies owned by military foundations would be forced to compete, or eventually face liquidation.".

MKEK for instance they are a disgrace for Turkey. They should be more effective.

But how come they, be it the CEOs/military or other organs, not done anything about this earlier? Because I believe that a well-doing MKEK would be equally appreciated by the owners as well as us, no?

 

[T-123456]

I guess they had a monopoly inTurkey.