THE HAGUE/ZAGREB, April 10 (Hina)- In the early nineties Yugoslavia, Bosnian Serbs and the so-called Republika Srpska Krajina were organised as an economic and monetary union, a financial expert Morten Torkildsen testified on Thursday
at the trial against former Yugoslav president Slobodan Milosevic in The Hague.
THE HAGUE/ZAGREB, April 10 (Hina)- In the early nineties
Yugoslavia, Bosnian Serbs and the so-called Republika Srpska
Krajina were organised as an economic and monetary union, a
financial expert Morten Torkildsen testified on Thursday at the
trial against former Yugoslav president Slobodan Milosevic in The
Hague. #L#
The Norwegian expert, employed as a financial investigator for the
ICTY, submitted a report to the trial chamber which was accepted as
official evidence.
In the report, based on a financial review of documents and
statement by witnesses, Torkildsen concluded that the Serb para-
states in Croatia and Bosnia-Herzegovina were entirely run from
Belgrade, primarily through the printing of their currencies.
The Yugoslav and Serb state budgets financed all the needs in
Republika Srpska and Republika Srpska Krajina, particularly their
military forces, the witness said, pointing out that Belgrade paid
officers salaries in the Bosnian Serb entity until February 2002.
Finances were conducted through joint services of public
accounting and the national banks in Knin and Banja Luka that were
absolutely subordinate to the National Bank of Yugoslavia, the
expert said citing a report by the NB Governor of Yugoslavia Milutin
Miletic.
The Serbian defence ministry played a key role in financing and
supplying equipment to the Serbs in Croatia and Bosnia-
Herzegovina, Torkildsen said.
Direct aid in military material and personnel, salaries for
officers and direct financial assistance was conducted through
that ministry that received requests from "Krajina" and forwarded
them to the federal (Yugoslav) defence ministry and the finance
ministry in Serbia.
A series of documents were enclosed with the witness's report to
back his findings.
Amongst else the court was shown a record of a meeting between Milan
Martic and Goran Hadzic (Croatian Serb rebel leaders) who discussed
the financial needs of the so-called Republika Srpska Krajina in
early 1993 as well as a decision by the Yugoslav central bank to
issue a loan to RS amounting to 67 billion dinars in 1992, a decision
to introduce a "new dinar" in all three entities in 1994, a request
by the Knin National Bank sent to the National Bank of Yugoslavia
for 10 million dinars in cash in 1995 and other documents.
Financing Serb rebels from the primary issue of money led to hyper-
inflation in Yugoslavia, the expert said.
During cross examination Milosevic attempted to prove that the
expert's analysis was deficient because it did not include legal
acts regarding these financial transactions while aid to Krajina
were justified by the indictee as a response to international
sanctions.
Milosevic will continue his cross examination of Torkildsen on
Friday while prosecutor Geoffrey Nice announced new witnesses in
the Croatian section of the trial relating to Skabrnja, Knin and
Vocin.
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