FEDERATION AUTHORITIES TO TAKE PUNITIVE ACTION AGAINST ILLEGAL FINANCIAL OPERATIONS

FINANCIAL OPERATIONS ( Editorial: --> 0841 ) SARAJEVO, 14 Nov (Hina) - The office of the High Representative for the implementation of the Dayton agreement has received a satisfactory reply from the authorities of the Federation of Bosnia-Herzegovina on recent findings of European Union investigators concerning the abuse of public funds and smuggling, Westendorp's spokesman Duncan Bullivant told a press conference in Sarajevo Friday. The office of the High Representative supported the views presented in the letter from Federation Finance Minister Drago Bilandzija, said Bullivant. The Federation financial police would carry out an investigation and take punitive action against persons responsible for acts which damaged the Federation's budget, Bullivant said. The answer we have received is the one we wanted and we support the announced action, he added. Today expired the two-week period Westendorp gave authorities of Bosnia-Herzegovina to provide an answer to reports by the Customs and Fiscal Assistance Office (CAFAO) saying that at least DM 43 million, instead of ending up in the two entities' budgets, ended up in the funds of illegal institutions or in the hands of individuals. The Federation Government yesterday decided to take steps aimed at reorganising the State Commodity Stockpiles Board, identified as one of the sources of illegal financial operations. Punitive action has also been announced against the Customs Administration officials and customs offices which allowed import of goods without payment of customs taxes. The Federation Government also decided to suspend an agreement on transport of goods for Republika Srpska as it was established that the agreement concealed a smooth-running smuggling chain. The Bosnian Serb authorities have still not responded to the CAFAO findings. (hina) rm 141420 MET nov 97