Unpaid debts to the state by municipalities are likely to stir up a new debate in Türkiye. As he criticized the opposition on Wednesday, President Recep Tayyip Erdoğan stated they would start the collection of debts of municipalities to the Social Security Institution (SGK). Although some municipalities run by Erdoğan’s Justice and Development Party (AK Party) also have outstanding debts, critics say opposition-run municipalities have more.
The issue was brought up by Labor and Social Security Minister Vedat Işıkhan before the March 31 municipal elections, which ended with significant gains for AK Party rival main opposition Republican People’s Party (CHP). Işıkhan has singled out the capital Ankara’s municipality run by the CHP as the mayoralty with the highest amount of debt.
The AK Party often accuses CHP-run municipalities of wasting their resources instead of improving public services and economic incompetence. The opposition municipalities also faced criticism of nepotism following the March 31 local elections when it emerged that several mayors appointed their next of kin to top positions in city halls.
Erdoğan on Wednesday said that the opposition hiked prices in everything from mass transit to water prices though they promised otherwise before the elections.
Overall, the total debt of municipalities across Türkiye to the SGK amounts to about TL 96 billion (about $2.9 billion). Işıkhan told Anadolu Agency (AA) on Thursday that the institution was responsible for covering health care expenses of 85 million citizens and monthly wages of 16 million pensioners. He added that its main source of income was an "uninterrupted" collection of premiums.
"We made a call to municipalities to pay their premium debts before the municipal elections and some heeded the call and paid. Unfortunately, number of municipalities with unpaid debts is still high," Işıkhan said. The minister said 80% of the debts was by companies the municipalities run. "It is wrong to funnel the financial resources to other venues instead of paying the debts that are future insurance and outcome of the labor municipality employees exerted," he stated.
Işıkhan said they were ready to help municipalities pay the debts through restructuring and different payment plans.