Turkey awarded a major satellite project to a newly established space company linked to President Recep Tayyip Erdoğan’s son-in-law, bypassing state institutions and competitive bidding, anonymous sources inside the Baykar company told investigative journalist Cevheri Güven.
Güven revealed these claims in his YouTube broadcast on Sunday, citing information provided by sources at Baykar, who spoke on condition of anonymity.
The ‘Uluğbey Project,’ which aims to create a 100-satellite constellation for Turkey’s global positioning, communication and intelligence needs, was awarded to Fergani Space.
The company was established by Selçuk Bayraktar specifically for this project, sidelining leading Turkish defense contractors TUSAŞ and ASELSAN, according to the sources.
Fergani Space company launched its domestically developed satellite aboard SpaceX’s Falcon 9 rocket on January 14, the state-run Anadolu news agency reported.
The satellite, the FGN-100-d1, weighs 102 kilograms and is the largest satellite developed by a private Turkish company.
The Uluğbey Project plans to deploy 100 satellites within five years to establish Turkey’s own GPS-like global positioning system, the sources said. The satellite constellation would serve communication and intelligence purposes, with services aimed at Turkey and neighboring countries.
The launch of Fergani Space’s first satellite followed a diplomatic resolution between Turkey and Elon Musk, according to sources who spoke to Güven. The Erdoğan administration had initially requested that Twitter, now known as X, block access to the accounts of opposition journalists and politicians in Turkey, which Musk initially refused to do.
The sources say Tesla vehicles were subsequently held up at Turkish customs for a month and denied entry into the country.
After Twitter blocked access to several opposition journalists’ accounts, including Güven’s, Tesla vehicles were cleared through customs, the sources said.
They added that President Erdoğan’s direct intervention with Musk led to an agreement that included launching Fergani Space’s satellite on SpaceX rockets.
The sources described SpaceX’s decision as unusual for a company typically focused exclusively on its own satellite program, calling it the result of political compromise.
SpaceX CEO Musk facilitated the launch of the first satellite, continuing collaboration with Turkey’s space program. Musk and Erdoğan have previously discussed space and investment projects during meetings in New York and Ankara.
The sources said Turkey plans to build a satellite launch base in Somalia as a critical part of the Uluğbey Project. The base would significantly reduce launch costs for the 100-satellite project by minimizing expenses currently paid to companies like SpaceX.
The sources said this strategic information was shared exclusively with Baykar while being withheld from other defense contractors.
Somali President Hassan Sheikh Mohamud confirmed the project, which analysts suggest could bolster Turkey’s role in the global space industry.
The sources said offers from defense contractors TUSAŞ and ASELSAN to undertake the project were rejected without explanation, despite their technological infrastructure and qualified personnel. The companies were sidelined in favor of Fergani Space.
Upon project completion, several Turkish public institutions will be required to make long-term payments to Fergani Space for satellite services, the sources said. These include the Turkish Armed Forces, the National Police, the National Intelligence Organization and General Directorate of Mapping.
Güven likened the Uluğbey Project to Turkey’s “guaranteed projects” model, where the government provides minimum payment guarantees to private companies regardless of actual usage. Similar to bridges, hospitals and airports, public institutions would make regular payments to Fergani Space for years, he said.
The sources cited two earlier defense industry cases to illustrate potential problems with awarding major projects without competitive bidding. They pointed to Vestel’s Karayel drone project and Koç Holding’s Altay Tank project.
Vestel’s Karayel drone lost market access despite meeting Turkish Armed Forces requirements after Baykar’s projects were prioritized, leading to its termination, according to the sources.
The Altay Tank project, developed by Koç Holding’s subsidiary OTOKAR to the prototype stage, was transferred from the Koç Group by a political decision, they said. While scheduled for delivery to the Turkish Armed Forces a decade ago, the new contractor has not delivered any tanks and promises only three by 2025.
Industry experts warned that single-company dependence could harm Turkey’s space and defense industry development.
The sources said TUSAŞ and ASELSAN could execute similar projects more cost-effectively, adding that the lack of competition could slow technological innovation and lead to inefficient use of public resources in the space and defense sectors.
Baykar Technology and Fergani Space executives have not responded to allegations voiced by Güven in his YouTube broadcast.
Baykar has previously faced scrutiny for leveraging its close ties to Erdoğan’s administration. The company’s drones, such as the Bayraktar TB2, have been exported to over 30 countries, benefiting from significant government support and high-profile promotions during Erdoğan’s foreign visits.