Learn how foreign investors can prevent bribery and corruption risks in Turkish energy projects. This 2026 legal guide explains anti-corruption compliance, third-party due diligence, EPC contracts, public procurement, internal investigations, and best practices for renewable energy investments.

Turkey’s energy sector continues to attract substantial foreign investment in solar power plants (GES), wind farms (RES), battery energy storage systems (BESS), hydroelectric projects, EV charging infrastructure, hydrogen facilities, and electricity distribution networks. These projects involve multiple government approvals, public authorities, contractors, consultants, customs procedures, and high-value procurement contracts, making anti-bribery and anti-corruption compliance a critical issue for investors.

Even a single corruption allegation may result in criminal investigations, contract termination, regulatory sanctions, financing problems, reputational damage, and significant financial losses. Foreign investors should therefore implement robust compliance procedures before entering the Turkish energy market.

This guide explains how to reduce corruption risks and protect energy investments in Turkey.

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Why Anti-Corruption Compliance Matters

Poor compliance may lead to:

• Criminal investigations.
• Administrative sanctions.
• Loss of licenses.
• Contract termination.
• Suspension of financing.
• Debarment from tenders.
• Shareholder claims.
• Reputational damage.
• Multi-million-dollar losses.

Preventive compliance is significantly less costly than defending an investigation.

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Main Corruption Risks in Energy Projects

High-risk areas include:

• License applications.
• Grid connection approvals.
• Land acquisition.
• Zoning procedures.
• Environmental permits.
• Customs clearance.
• Public procurement.
• EPC contractor selection.
• Consultant appointments.
• Third-party intermediaries.

Every interaction with public authorities should be properly documented.

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Third-Party Due Diligence

Many corruption cases originate through:

• Local agents.
• Consultants.
• Customs brokers.
• EPC contractors.
• Subcontractors.
• Business development advisers.

Before engagement, investors should verify:

• Corporate registration.
• Ultimate beneficial ownership.
• Reputation.
• Litigation history.
• Regulatory history.
• Financial capability.
• Conflicts of interest.

Due diligence should continue throughout the relationship.

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Gifts, Hospitality and Sponsorships

Companies should establish clear internal rules regarding:

• Business gifts.
• Travel expenses.
• Entertainment.
• Charitable donations.
• Sponsorships.
• Promotional events.

All expenditures should have a legitimate business purpose and proper approval.

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Payments to Consultants

Consultancy agreements deserve particular scrutiny.

Red flags include:

• Excessive commissions.
• Success fees linked to permits.
• Cash payments.
• Offshore payment requests.
• Undefined services.
• Missing invoices.

Every payment should be commercially justified and fully documented.

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Public Procurement Risks

Energy companies participating in public tenders should avoid:

• Bid rigging.
• Improper communications.
• Undisclosed conflicts of interest.
• False documentation.
• Collusive bidding.

Internal tender procedures should require legal review before submission.

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Internal Reporting Mechanisms

An effective compliance system should provide confidential reporting channels for:

• Bribery.
• Fraud.
• Kickbacks.
• Conflicts of interest.
• Procurement irregularities.
• Accounting concerns.

Employees should be protected from retaliation when reporting concerns in good faith.

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Internal Investigations

When misconduct is suspected, companies should:

• Preserve evidence.
• Secure electronic records.
• Interview relevant personnel.
• Review contracts.
• Assess financial exposure.
• Consider reporting obligations.
• Implement corrective measures.

Investigations should be conducted promptly and objectively.

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Accounting Controls

Strong financial controls help prevent corruption.

Companies should monitor:

• Approval procedures.
• Segregation of duties.
• Vendor payments.
• Expense claims.
• Petty cash.
• Procurement approvals.
• Invoice verification.

False accounting records often accompany bribery schemes.

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Training Employees

Regular training should be provided to:

• Directors.
• Managers.
• Procurement teams.
• Project managers.
• Sales personnel.
• Government relations staff.
• Finance departments.

Training should include practical examples relevant to energy projects.

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Contractual Protection

Contracts with suppliers and contractors should include:

• Anti-corruption warranties.
• Compliance obligations.
• Audit rights.
• Record-keeping requirements.
• Termination rights.
• Indemnification clauses.

These provisions help reduce legal exposure if misconduct occurs.

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International Compliance Considerations

Foreign investors may also be subject to:

• UK Bribery Act.
• U.S. Foreign Corrupt Practices Act (FCPA).
• Internal corporate compliance policies.
• Lender compliance requirements.

Turkish compliance programs should be aligned with international standards where appropriate.

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Top 20 Anti-Corruption Compliance Checks

1. Perform third-party due diligence.
2. Adopt a written anti-corruption policy.
3. Create a whistleblower system.
4. Conduct employee training.
5. Review consultancy agreements.
6. Monitor gifts and hospitality.
7. Implement procurement controls.
8. Verify beneficial ownership.
9. Review public tender procedures.
10. Maintain accurate accounting records.
11. Audit high-risk payments.
12. Screen business partners.
13. Review sponsorships.
14. Monitor charitable donations.
15. Conduct periodic compliance audits.
16. Preserve investigation records.
17. Train senior management.
18. Review subcontractors.
19. Establish approval procedures.
20. Obtain specialist legal advice.

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Common Compliance Mistakes

Foreign investors often:

• Skip due diligence on consultants.
• Use vague consultancy agreements.
• Ignore conflicts of interest.
• Fail to document approvals.
• Conduct no employee training.
• Overlook subcontractor risks.
• Delay internal investigations.
• Ignore anonymous reports.
• Maintain weak accounting controls.
• Review compliance only after problems arise.

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Best Practices

To minimize corruption risks:

• Build a risk-based compliance program.
• Conduct ongoing third-party screening.
• Document all government interactions.
• Monitor procurement procedures.
• Train employees regularly.
• Review contracts before signing.
• Investigate allegations immediately.
• Conduct annual compliance audits.

A proactive compliance culture is the strongest defense against regulatory and criminal exposure.

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Frequently Asked Questions

1. Why is anti-corruption compliance important for energy projects?

Energy projects involve licensing, procurement, customs, environmental permits, and interactions with public authorities, making them particularly vulnerable to corruption risks.

2. Who creates the greatest corruption risk?

Third-party consultants, agents, subcontractors, customs brokers, and intermediaries frequently present the highest compliance risks if they are not properly vetted.

3. Should every energy company have an anti-bribery policy?

Yes. Regardless of size, companies should adopt written anti-bribery policies supported by training, reporting mechanisms, and internal controls.

4. How often should compliance training be provided?

At least annually, with additional training for new employees and personnel working in high-risk functions such as procurement, licensing, and government relations.

5. Can companies be liable for the actions of consultants?

Yes. Depending on the circumstances, companies may face legal and commercial consequences for misconduct committed by third parties acting on their behalf.

6. What should happen after a corruption allegation?

The company should immediately preserve evidence, conduct an internal investigation, assess legal obligations, and take corrective action where necessary.

7. Why is third-party due diligence essential?

Because many bribery investigations involve intermediaries rather than direct company employees. Proper screening significantly reduces legal and commercial risks.

8. Why should foreign investors hire a Turkish energy lawyer?

A Turkish energy lawyer can establish effective compliance programs, review high-risk contracts, conduct internal investigations, advise on regulatory obligations, perform due diligence, and represent investors in regulatory or criminal proceedings.

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Legal Support – Contact Our Energy Compliance Lawyers

Strong anti-bribery and anti-corruption compliance is essential for protecting renewable energy investments in Turkey. Early legal planning reduces regulatory exposure, protects project financing, and strengthens investor confidence.

Fırat Fesih Kaya and our legal team advise foreign investors, renewable energy developers, EPC contractors, infrastructure funds, multinational corporations, and energy companies on anti-corruption compliance, internal investigations, due diligence, regulatory compliance, commercial contracts, and Turkish energy law.

24/7 Emergency Phone: +90 532 769 22 22

Office Phone: +90 312 434 22 22

Email: info@firatfesihkaya.av.tr

Address: Mevlana Boulevard No:221, Yıldırım Tower, Office No:148, 06520 Balgat, Çankaya, Ankara, Turkey