The indictment against Cengic, who is considered one of the most influential Muslim politicians, was issued by the Prosecutor's Office's department for organised and white-collar crime and corruption.
Under the indictment that was read by prosecutor Drew Engel, in August 1996 Cengic, at the time deputy defence minister of the Croat-Muslim entity, illegally granted authorisation to a company called the Bosnian Investment Organisation (BIO) to produce explosives, thus helping it acquire gain exceeding 5,000 euros.
It is alleged that as the top man of the Foundation for Assistance to Muslims in Bosnia-Herzegovina Cengic was linked to the establishment of the BIO and that his decision was therefore a classic example of conflict of interest.
Under the laws existing at the time, the permission to deal in or produce arms and explosives could have been given only by the entity government and with the consent of the ministers of defence, the interior and industry.
Cengic said that he understood the indictment, but complained that he had not have enough time to study all the evidence and gather documents necessary for his defence.
The trial will continue on May 4.