Swiss probe Milosevic gold sales

ZURICH, Switzerland -- Swiss officials are investigating whether ex-Yugoslav President Slobodan Milosevic received cash from a series of gold sales in the weeks surrounding his fall from power.

The Belgrade district prosecutor's office has ordered police to carry out a criminal investigation into allegations that Milosevic smuggled more than 400 pounds of gold to Switzerland then onto two other unnamed countries.

Swiss officials say gold sales were made but it was not known whether Milosevic was behind the transactions.

In the weeks before and after Milosevic's topple from power last October, gold worth $1.1 million (1.8 million Swiss francs) was moved from Yugoslavia in four separate shipments, according to Swiss data.

Othmas Wyss, head of international trade sanctions at the Economics Ministry, said there were no indications that Milosevic had profited from the gold sales or that they had circumvented a trade embargo against Belgrade.

"The gold sales were made on behalf of firms in Greece and Cyprus and there are no indications at the moment that these firms belong to Yugoslav state interests," he said.

The sales would have been in violation of a trade embargo if the proceeds had gone to any blacklisted bank accounts belonging to Milosevic, his family, aides or state companies.

Yugoslav prosecutors have said the inquiry was the first legal step in a process that could result in Milosevic's arrest. If they get more evidence, they could order Milosevic's detention amid fears he could flee the country or destroy evidence.

But Milosevic supporters have staged a vigil outside his Belgrade home and a member of his Socialist Party said: "We do not believe that there is any substantiated evidence against the president of our party and the former president of Yugoslavia."

VIDEO Alessio Vinci reports on the efforts to arrest Milosevic Play video (QuickTime, Real or Windows Media)

Serbia's new reformist leaders have so far refused to surrender Milosevic, arguing that Milosevic should be tried in Yugoslavia. Milosevic has always staunchly denied wrongdoing during his time in office.

A number of offences, including corruption, illegally taking state funds abroad, illegal real estate and war crimes, have been mentioned as possible crimes he could be charged with in Serbia.

The prosecutor's statement suggests that the government initially wants Milosevic on trial for fraud and stealing state property.

The United States has made its aid conditional on Belgrade's co-operation with the tribunal before April 1 this year. Congress votes on a multi-dollar package on March 31.

The U.N. tribunal has indicted Milosevic and four of his top officials on charges that forces under their command in Kosovo committed war crimes against ethnic Albanians before and during NATO's 1999 bombing campaign.

Reuters contributed to this report.

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