Cengic is allegedly accused of having abused his office and illegal arms trade in his capacity as deputy defence minister of the Croat-Muslim entity -- the Bosnian Federation.
The State Prosecutor's Office has not confirmed issuing the indictment, which the media claim was signed by Johnatan Schmidt, an international prosecutor from the department against organised crime and corruption.
The indictment becomes effective once it has been approved by the Court of Bosnia-Herzegovina, which, it is assumed, might occur next week.
According to Bosnian Federation TV, which was the first to report about the indictment, Cengic is suspected of having unlawfully authorised a company to manufacture arms even though only the Bosnian Presidency was allowed to do so. It is assumed that the Bosnian Investment Organisation, which is presided by Cengic, was involved in the venture.
In a statement to Dnevni Avaz daily, Cengic denied any responsibility, saying this was a political squaring of accounts with him.
Cengic said he did not doubt the existence of the indictment and that he had already contacted prosecutor Schmidt. He added Schmidt offered him a bargain but that he refused. He also declined to say what the bargain consisted of.
During the 1990s Bosnian war, Cengic was in charge of raising money for the purchase of arms for the Army of Bosnia-Herzegovina and was said to be the power behind the Bosnian Muslim policy. He controlled millions which Bosnia received in donations as defence assistance. His activities during and after the war aroused the interest of Western governments.
Cengic was relieved of duties as deputy defence minister, his post immediately after the war, at the insistence of the US administration. Two years ago he was banned from entering the US but this had no effect on his status and influence in the SDA and the state Parliament.