HAGUE TRIBUNAL REPORTS ON ILLEGAL PURCHASE OF ARMS IN YUGOSLAVIA

BELGRADE, June 7 (Hina) - In the period between 1994 and 2000 Slobodan Milosevic's regime illegally and without consent used state budget funds to ensure equipment and resources for the Yugoslav Army (VJ), a report released on Thursday by the International Criminal Tribunal for the former Yugoslavia in the Hague noted. #L# The document notes that the Hague tribunal reviewed and analysed documents regarding funding for the Serbian Interior Ministry and VJ, which were engaged in Kosovo in the first half of 1999. From the documents it is evident that since 1994, the federal customs agency allowed the collection of large sums of money. This money was directed, by order of Milosevic, to the army and police and to finance institutions in Serbia, and even abroad through the Cyprus branch of "Beobank" and fictive companies set up in Cyprus. The report notes that a financial structure was set up in Cyprus following the introduction of sanctions against Yugoslavia in 1992 which limited opportunities for the legal purchase of arms and military equipment. Enclosed with the report was a statement by Slobodan Milosevic that it was vital that this expenditure be kept a "state secret", and as such were not included in the annual federal or republic budget. (hina) sp sb