Firm denies Milosevic link to gold

BELGRADE, Yugoslavia -- Gold linked to Slobodan Milosevic did not belong to Yugoslavia and proceeds from its sale did not go to the former president, officials say.

Serbian prosecutors have asked police to investigate whether Milosevic sold more than a million dollars' worth of state gold in Switzerland and then put the proceeds abroad in the bank accounts of foreign companies.

But the head of the Yugoslav customs service told Reuters that Yugoslavia's Bor mine and metallurgy complex had processed copper ore from foreign companies into by-products including gold and returned them to the foreign owners.

A Bor mines' official denied the proceeds of the gold transaction had gone to Milosevic, who has always denied any wrongdoing in his time in office.

"I state categorically the cash from the gold sale did not go to Milosevic's accounts," Beta news agency quoted Miroslav Prvulovic as saying.

Swiss customs have confirmed the arrival of a total of 173 kg (380 lb) of unrefined gold from Yugoslavia's Bor mines in four shipments from September to November last year.

Also on Friday, a Swiss metals trading and refining company said the gold it had processed was not linked to Milosevic.

In a statement issued in Zurich, the MKS Finance SA said the company "was actively involved in the investigation conducted in Switzerland to assess the exact origin of the gold deliveries made to Switzerland by a Yugoslav metallurgical complex producing gold as a by-product."

The statement said these checks "did not establish any link between the gold that has transited through the MKS refinery and Milosevic or any individuals or companies related to Milosevic."

International pressure on Milosevic remains high with mounting pressure on the new administration to hand him to the International Court of Justice to face charges of genocide.

He has already been indicted by the United Nations war crimes tribunal.

Milosevic's supporters have recently begun staging round-the-clock vigils near his home to try and thwart any attempted arrest of the former president.

"The people in the street -- a few dozen on Thursday night -- are a reminder of the fact that Milosevic still enjoys substantial support," said CNN Belgrade Bureau Chief Alessio Vinci.

"About one out of five voters cast their ballots for Milosevic in Serbia's parliamentary elections in December, making his Socialist Party the main opposition group," Vinci added.

The vast majority of Serbs, including some who would now like to see him face charges over claims of enriching himself during the years of regional conflict, support Milosevic for having stood up for what they consider Serbian interests during 1999's conflict with NATO

Reuters contributed to this report.

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