AFAD audit report reveals accounting errors in disaster housing funds

A 2025 audit report by the Turkish Court of Accounts (Sayıştay) has identified financial irregularities within the Disaster and Emergency Management Presidency (AFAD). The report notes that AFAD utilized 99.92% of its 243 billion lira budget, spending approximately 242.9 billion lira.

The audit highlighted two primary findings regarding financial mismanagement. First, funds transferred to TOKİ and Emlak Konut GYO for the construction of disaster housing and infrastructure were recorded directly as expenses rather than being tracked in appropriate accounts, leading to accounting errors. The report emphasized that these funds should be tracked in accordance with their intended purpose.

Second, the report found that earthquake housing units completed by TOKİ and Emlak Konut GYO and delivered to AFAD were not recorded in the correct accounts. According to regulations, once temporary acceptance processes are completed, these investments should be transferred to tangible fixed asset accounts. The failure to record these assets has resulted in inaccuracies within AFAD's balance sheets, meaning the financial statements do not produce accurate or real information.