SARAJEVO/BANJA LUKA, Feb 25 (Hina) - At least 80 million euros were embezzled during 2002 from proceeds which the power-supply company in the Bosnian Serb entity ("Elektroprivreda Republike Srpske" or EP RS) earned last year,
according to findings of international auditors who checked the business operation of the company. The audit in the company was ordered by the Office of the High Representative to Bosnia-Herzegovina (OHR).
SARAJEVO/BANJA LUKA, Feb 25 (Hina) - At least 80 million euros were
embezzled during 2002 from proceeds which the power-supply company
in the Bosnian Serb entity ("Elektroprivreda Republike Srpske" or
EP RS) earned last year, according to findings of international
auditors who checked the business operation of the company. The
audit in the company was ordered by the Office of the High
Representative to Bosnia-Herzegovina (OHR). #L#
According to reports published by Tuesday's issues of Bosnian
dailies, the international experts, who verified the business
operations of the EP RS, in cooperation with the Serb entity's chief
auditor, established that the money earned from the production and
sale of electricity were used for needs of "a small group of
people".
Local media have already speculated that grey funds of the company
are being used for financing of the harbouring of notorious Bosnian
Serb war criminals such as their war-time leader Radovan Karadzic.
Quoting excerpts from the experts' report, which is still not
available to the public in its entirety, a daily "Dnevni Avaz" said
that the control had established that the company, whose main
offices are in the southern town of Trebinje, was transferring more
money in Belgrade than what it retained in Bosnia.
According to the same source, mismanagement, irresponsible
behaviour of those who are running company and spending of means are
conspicuous features of the business operation of the ES RS.
According to another daily "Nezavisne Novine", murky dealings of
the EP RS are linked with the branch office of Energy Financing Team
Ltd (EFT), whose main offices are in London. This is an off-shore
company led by controversial businessmen of the Serb descent, Vuk
Hamovic and Vojin Lazarevic.
The findings of the auditors point to indicative things such as that
bills sent by "Petrol" from Pale (known as the stronghold of Serb
hard-liners) and "Petrol" from Trebinje are always paid by the EP RS
in cash, while other claims are compensated in other ways.
The World Bank makes the granting of a favourable $90-million loan
conditional on the privatisation of the EP RS. The management of the
company, however, greeted this decision with huge opposition. It is
known that the Serb Democratic Party (SDS), established by Karadzic
and his staunch followers, is wielding great clout on the company's
management which, with help of trade unions, staged rallies against
the possible privatisation of the company.
(hina) ms