Bosnian Serb bank is missing millions

Bosnia: Vast sums of money have disappeared from a Bosnian Serb bank suspected of helping war crimes suspects evade capture, …

Bosnia: Vast sums of money have disappeared from a Bosnian Serb bank suspected of helping war crimes suspects evade capture, according to an international auditor.

Tory Robinson, administrator of the Privredno Banka Srpsko, also said her findings may implicate leading members of the Bosnian Serb ruling party, including former president Mirko Sarovic and former parliamentary speaker Dragan Kalinic.

"We have discovered incredible embezzlement," Ms Robinson told Bosnia's Dnevni Avaz newspaper.

"Several million marks disappeared," she added, referring to the convertible mark that Bosnia has used since the end of its 1992-95 war.

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Of evidence suggesting the involvement of senior Bosnian Serb politicians, she said the state prosecutor "would decide whether it is enough to press charges.

"We are talking about clear misuse of position, corruption and crime," Ms Robinson added. "I'm appalled by the way money was used."

Lord Paddy Ashdown, the top international official in Bosnia, placed Ms Robinson in charge of the bank last November after declaring it insolvent and accusing it of helping to shield and support war crimes suspects.

The bank's owner, Momcilo Mandic, was arrested in a Montenegro resort last month and now awaits trial for money-laundering, a charge he denies.

He also rejects allegations that he has helped protect Radovan Karadzic, the former Bosnian Serb president whom he served as justice minister during the war.

Mr Karadzic has been on the run since 1997, but is still widely regarded as a hero in his homeland and is believed to have many rich and powerful supporters, including leading figures in politics, business and the influential Serb Orthodox Church.

Lord Ashdown has regularly clashed with prominent Bosnian Serb politicians over alleged financial misdemeanours.

His stormy relationship with them erupted again last week when the Bosnian Serb parliament rejected the unification of a Bosnian police force that is currently divided along Serb, Muslim and Croat lines.

Daniel McLaughlin

Daniel McLaughlin

Daniel McLaughlin is a contributor to The Irish Times from central and eastern Europe