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EX-TEMPORARY MANAGER OF BANK TESTIFIES IN HERCEGOVACKA BANKA TRIAL

SARAJEVO, Oct 27 (Hina) - A former temporary manager of theMostar-based Hercegovacka Banka, Toby Robinson, on Wednesday took thewitness stand in the trial of a former Croat member ofBosnia-Herzegovina's collective presidency, Ante Jelavic, accused ofembezzling funds which Croatia sent via the bank to local Croats.
SARAJEVO, Oct 27 (Hina) - A former temporary manager of the Mostar-based Hercegovacka Banka, Toby Robinson, on Wednesday took the witness stand in the trial of a former Croat member of Bosnia-Herzegovina's collective presidency, Ante Jelavic, accused of embezzling funds which Croatia sent via the bank to local Croats.

Robinson told the Court of Bosnia-Herzegovina's panel of judges, presided by Briton Michael Simmons, that the Croatian Democratic Union of BiH (HDZ BiH) had been suspected of having opened secret accounts in the bank which were used to finance the party, and that's why operations to check suspicious dealings had been launched.

The prosecution witness said that two operations were launched on 6 and 17 April 2001 in the bank's main offices in the city of Mostar, with the purpose of collecting documents which might clear any doubts which the then Office of the High Representative had about business transactions of that financial institution.

The first operation of 6 April 2001 was carried out with troops of the NATO-led Stabilisation Force (SFOR) providing protection, but it was interrupted due to incidents. The second operation ensued ten days later when all the available documentation was checked and scanned, Robinson said.

She added that particular attention was paid to loans which the bank had granted by April 2001.

The witness did not specify what exactly had been found in the documents, but defence attorney Dragan Barbaric insisted that nothing was found which would link Jelavic with business activities of Hercegovacka Banka.

Barbaric also asked for an explanation as to whether the documents, submitted as evidence by the prosecution, represented by John McNair, had been collected in a lawful manner and with a warrant previously issued by the relevant court. He also wanted to know whether such evidence could be used in the continuation of the trial.

Judge Simmons said the panel of judges would decide on the matter in the course of the trial.

Jelavic, accused of embezzlement and abuse of office, is the principal defendant in the Hercegovacka Banka trial. Two other defendants -- Miroslav Prce, a former defence minister of the Bosnian Croat-Muslim entity, and Miroslav Rupcic, a former director of the Hercegovina Osiguranje insurance company -- recently pleaded guilty following plea bargains and received prison sentences of five and five and a half years respectively.

The trial against another two defendants, Ivica Karlovic and friar Ivan Sevo, was separated from the Jelavic trial as the two were charged with only one count from the indictment.

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