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BOSNIA FEDERAL MINISTRY REBUTS ALLEGATIONS ON ARMS EXPORT TO IRAQ

SARAJEVO, April 4 (Hina) - The findings of the federal defence ministry's checking of the military sector show that military companies in the Croat-Muslim entity had not taken part in the export of arms and military equipment to Iraq, the defence minister of the Federation of Bosnia-Herzegovina, Miroslav Nikolic said on Friday.
SARAJEVO, April 4 (Hina) - The findings of the federal defence ministry's checking of the military sector show that military companies in the Croat-Muslim entity had not taken part in the export of arms and military equipment to Iraq, the defence minister of the Federation of Bosnia-Herzegovina, Miroslav Nikolic said on Friday. #L# Nikolic said his ministry's officials in cooperation with the interior ministry and federal finance police had carried out a thorough audit in relevant federal companies as soon as it was found that the Orao military institute in the Bosnian Serb entity had murky business dealings with the Saddam Hussein regime. No evidence was found during that inspection in the Federation. "The inspections found no direct violation of the UN embargo on the export of arms and military equipment (to Iraq). The documents on the end users of the services of export in all cases show that there was no trading with any country under the UN embargo of this kind," Nikolic said. He thus rebutted the media speculations, and accusations from the Republic of Srpska levelled against the other entity, that the Croat-Muslim Federation was also involved in the murky dealings with Iraq. Only a day after Mirko Sarovic, former Serb entity's president was forced to assume his political responsibility for the Orao scandal and resign from the post of the chairman of the Bosnian collective presidency, a deputy of the High Representative to Bosnia, Donald Hays, asserted that the international community possessed data on the federal authorities' involvement in that export. Hays was quoted by the Banja Luka daily "Nezavisne Novine" as saying that managers of the "Jugoimport" firm in Belgrade had told him that companies from both Bosnian entities had been engaged in the business operations with Iraq. The Federation's vice premier, Dragan Vrankic, said the federal government asked for the checking of the information released by the defence ministry. The accusations against the federal military firms could be based on their business operations with other companies within Bosnia- Herzegovina. Pursuant to the existent laws, no certificate or letter is needed on the end user if the operations are conducted inside Bosnia. Thus it is possible that the federal companies had indirectly operated with Iraq, via partners in the Serb entity. Nikolic said there were data on the business ties between the companies in the federation and the "Jugoimport" in Belgrade, but the end user in such dealings was always a country not covered by the UN ban on arms export. (hina) ms sb

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