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UN MISSION ON ALLEGED ILLEGAL ACTIVITY IN HERCEGOVACKA BANK

MOSTAR, Oct 20 (Hina) - The spokesman for the Mostar-based office of the United Nations Mission to Bosnia, Steffo Lehmann, on Wednesday told the press in the southern Bosnian town it would be wise for police to start inspecting the work of Hercegovacka Bank due to the existence of reports on alleged illegal activity in its business. The bank's management immediately reacted, assessing the statement as another step in a campaign which alleged illegal activities with the aim to destabilise this key Bosnian Croat political and economic institution. Lehmann said the UN Mission had been informed there might be illegal activity going on in the work of Hercegovacka Bank, which, he added, if proved correct could endanger the paying of salaries to cantonal police staff. It would be a serious signal to the UN Mission to Bosnia, he said. The Hercegovacka Bank Board of Administration said in a statement that
MOSTAR, Oct 20 (Hina) - The spokesman for the Mostar-based office of the United Nations Mission to Bosnia, Steffo Lehmann, on Wednesday told the press in the southern Bosnian town it would be wise for police to start inspecting the work of Hercegovacka Bank due to the existence of reports on alleged illegal activity in its business. The bank's management immediately reacted, assessing the statement as another step in a campaign which alleged illegal activities with the aim to destabilise this key Bosnian Croat political and economic institution. Lehmann said the UN Mission had been informed there might be illegal activity going on in the work of Hercegovacka Bank, which, he added, if proved correct could endanger the paying of salaries to cantonal police staff. It would be a serious signal to the UN Mission to Bosnia, he said. The Hercegovacka Bank Board of Administration said in a statement that "the monitoring of the lawfulness of bank business in the Federation of Bosnia-Herzegovina falls under the jurisdiction of the Federation's Banking Agency, and not the UN Mission." The Agency "has found no illegal activity in the bank's business so far, and there is a report on the matter," the management said. The board concluded by saying the paying of salaries does not depend on the bank because it is not the owner of its clients' accounts, including that of the cantonal interior ministry, but on the institution which employs police staff. (hina) ha

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