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EXISTENCE OF MISMANAGEMENT AT HERCEGOVACKA BANK HAS BEEN ESTABLISHED - WITNESS

SARAJEVO, Nov 24 (Hina) - The former interim manager of HercegovackaBanka, Toby Robinson, said on Wednesday the existence of mismanagementin the Mostar-based bank had been established, but she failed toprovide proof which would link former Bosnian Presidency member AnteJelavic with the making of business decisions.
SARAJEVO, Nov 24 (Hina) - The former interim manager of Hercegovacka Banka, Toby Robinson, said on Wednesday the existence of mismanagement in the Mostar-based bank had been established, but she failed to provide proof which would link former Bosnian Presidency member Ante Jelavic with the making of business decisions.

She was speaking before the Court of Bosnia-Herzegovina for the fourth time as a prosecution witness at the trial of Jelavic, who is accused of financial wrongdoing involving Hercegovacka Banka and the embezzlement of funds Croatia had been sending as assistance to Croats in Bosnia.

Robinson reiterated that the bank served solely for the financing of Bosnia's Croatian Defence Council and a group of people in the Defence Ministry of the Croat-Muslim entity when Jelavic and Miroslav Prce were at the helm of the ministry.

Robinson became the bank's temporary manager in 2000, after then High Representative to Bosnia Wolfgang Petritsch asked for a probe into the existence of secret accounts used to finance Bosnia's Croatian Democratic Union party.

She said today that considerable cash payments, whose ultimate purpose could not be established, were made via Hercegovacka Banka.

The transactions involving the money from Croatia were carried out solely through the bank. The prosecution has called many witnesses who claimed that as employees of the entity Defence Ministry they had been granted very favourable loans from the bank.

In today's testimony Robinson focused on the bank's transactions when Jelavic was the entity's defence minister in order to link his post with the loan granting and the embezzlement of the money from Croatia.

Jelavic's defence did not categorically deny that there had been omissions and mismanagement at Hercegovacka Banka, but said this concerned the bank's management and not Jelavic in his capacity as former entity and state official.

The trial resumes on December 8.

Miroslav Prce, a former entity defence minister, admitted partial responsibility in the Hercegovacka Banka case and was sentenced to five years' imprisonment, as did Miroslav Rupcic, former director of an insurance company, who was given a 5 and 1/2 dyear sentence.

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