The trial chamber conducting the case said that it had been established beyond doubt that Momcilo Mandic, in his capacity as chairman of the PBSS Management Board, had influenced the unlawful granting of loans, some of which were used to illegally finance the Serb Democratic Party (SDS).
Mandic was also charged with having used some of the embezzled money to help hide war crimes indictees, but the court decided that there was no evidence to support those charges.
Milorad Govedarica, former manager of a firm owned by the SDS, which was granted fictitious loans, was sentenced to four years in prison.
The third indictee, Milovan Bjelica, former senior SDS official, was acquitted, as was a former Serb member of Bosnia's collective state presidency, Mirko Sarovic.
Mandic has been also indicted for war crimes and will soon be tried on those charges.
Sarovic has been also indicted for trying to intimidate witnesses, which is why he will have to remain in custody despite the acquittal in this case.