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US: Bosnia, Yugoslavia helped Iraq
( 2002-10-24 10:37 ) (7 )

The United States said Wednesday a Bosnian aviation firm and Yugoslavia state-run arms dealer helped Iraq repair aircraft in violation of the UN arms embargo.

US authorities have "clear evidence" that the aviation firm, Orao Aviation, and the arms dealer, Yugoimport, provided military assistance to Iraq, according to a statement released by the US Embassy in the Bosnian capital of Sarajevo.

"The US expects the relevant authorities in Bosnia-Herzegovina and Yugoslavia to undertake the necessary steps to immediately halt any ongoing cooperation with Iraq, to conduct a thorough investigation and hold accountable those responsible," the statement said.

Authorities in the Bosnian Serb Republic, where Orao is located, acknowledged the company's involvement in the illegal trading.

"The Orao company has been violating the embargo on export of arms to Iraq. The responsible individuals will have to be punished," said Cvijeta Kovacevic, the head of the government's information bureau in Banja Luka.

The U.N. Security Council has maintained a strict embargo on trading with Iraq since Saddam's army invaded neighboring Kuwait in 1990. Countries violating the embargo could face sanctions.

Authorities provided few details about the violations, which apparently came to light after NATO peacekeepers raided the Orao factory earlier this month.

The government of Yugoslavia promptly fired Yugoimport's director, Jovan Cekovic, and a deputy defense minister, Ivan Djokic, and ordered the arms dealer to shut down its Baghdad office.

The US government welcomed the moves, State Department spokesman Philip Reeker said. "We believe that these are significant decisions by the government of Yugoslavia."

The scandal has become a major embarrassment for officials in Belgrade. Serbia's justice minister, Vladan Batic, demanded the resignation of Prime Minister Dragisa Pesic and Defense Minister Velimir Radojevic.

Batic made the demand as leaders in Belgrade clashed over who was responsible for the scandal, which could result in renewed sanctions against the troubled Balkan country.

Zoran Djindjic, the prime minister of Yugoslavia's dominant republic, Serbia, accused the federal president, Vojislav Kostunica, of "not doing his job" by failing to prevent some members of the federal Yugoslav army from doing business with the regime of Iraqi president Saddam Hussein.

"This is so damaging to our international reputation," Djindjic said. "At a time when major nations are rallying to battle terrorism, it is very dangerous to be on the other side."

The American embassy said the revelations about illegal transactions with Iraq were presented to senior officials in the Bosnian Serb republic, central authorities in Sarajevo and the government of Yugoslavia.

"The officials have pledged a full investigation of these allegations," the embassy statement said.

President Kostunica admitted the embargo against Iraq was violated and said a thorough investigation in Belgrade was underway.

He played down the extent of assistance, describing it as "merely some work on repairing aircraft engines of an older generation, not ... the sale of modern weaponry which we don't have, anyway." Still, he acknowledged that any such ties with Iraq were "hazardous and irresponsible."