MOSTAR, Dec 16 (Hina) - Following an investigation into business operations of the Hercegovacka Bank in Mostar, many cases if wrongdoing were discovered within the bank as well as numerous violations of the law, temporary
administrator of Hercegovacka Bank Toby Robinson said in Mostar on Monday.
MOSTAR, Dec 16 (Hina) - Following an investigation into business
operations of the Hercegovacka Bank in Mostar, many cases if
wrongdoing were discovered within the bank as well as numerous
violations of the law, temporary administrator of Hercegovacka
Bank Toby Robinson said in Mostar on Monday. #L#
Many cases of wrong-doing were disclosed within the bank, numerous
violations of the law, insecure and poor banking practises as well
as non-transparent transactions, Robinson said at a press
conference following the conclusion of an investigation into that
financial institution.
Robinson was appointed as temporary administrator of the bank
eighteen months ago by the then High Representative to Bosnia-
Herzegovina, Wolfgang Petritsch.
At least 216 million convertible marks (nearly 110 million euros)
intended for soldiers' salaries and pensions payments for war
widows were used for other purposes, Robinson said.
She explained that these were funds secured by the Croatian
government and sent to assist Croats in Bosnia. However, the money
was 'redirected' and so the beneficiaries never received it.
Robinson pointed out that this was money paid by the Croatian
government with the mediation of the bank in question in the period
from March 1998 to January 2001 intended for the Croatian component
of the Federation army.
She stressed that some shareholders of the Hercegovacka Bank used
the funds paid in by the Croatian government to finance attempts to
change the Bosnian constitution, hinting at last year's attempt to
set up a Croatian self-government in Bosnia i.e. the third entity.
The detailed report resulting from the investigation was submitted
by Robinson to the international High Representative, Paddy
Ashdown, who will make a decision about the fate of the bank before
the end of the year. Three decisions by the High Representative are
possible: liquidation, restructuring or the sale of the bank,
Robinson said and added that the report was also sent to the Federal
Public Prosecutor.
The 90-page report was made available to reporters in Mostar and
high ranking politicians and state officials from the Bosnian
Croatian Democratic Union (HDZ BiH) are more than once mentioned in
connection with the wrongdoing. Amongst them are Ante Jelavic,
Miroslav Prce, Pero Markovic and Ljubo Cesic Rojs, a member of the
Croatia's parliament.
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