THE ECONOMICS OF "ETHNIC CLEANSING"

C TE-EA: Women's clothing manufacturer, exported to Italy. Owned by Hamdija Balic, a wealthy and prominent Bosniak resident of Kozarac. TE-EA employed approximately one hundred people. Balic lived in the Netherlands for a time and them returned to Bosnia to open the company. He was imprisoned and killed in Omarska concentration camp.

C Tvornica Zavarenih Sklopova: This company did not have a formal name, but was known by its description (Factory for Welded Machine Parts). Zlatan Besirevic, the Bosniak director, was a mechanical engineer and director of the company, which exported products to Western markets and appears to have been one of the more profitable businesses in Prijedor. Besirevic was also killed in Omarska. Most of the machinery of the company was stripped and taken to Serbia.

C Mira Cikota: A division of the Josip Kras company, headquartered in Zagreb, which produces cookies and candy (Kras was one of the biggest companies in Yugoslavia before the war). Miroslav Turnusek, the director of Mira Cikota, was imprisoned in Omarska, but survived. The Mira Cikota factory was also stripped of machinery, which was sent to Serbia. A number of other employees, however, perished in Omarska camp. Among them were Antonije Komsic (main technician); Uka Muric (mechanical engineer and inventor); Mr. Nasic (first name unknown, economist and member of sales division). Hakija Hodzic, head of the sales division, was detained in both Omarska and Manjaca but survived; Rizah Begverbegovic, deputy director of Mira Cikota, was detained in Omarska but also survived.

C Ljubija Iron Ore Mine: This company, as mentioned, included several mines: Ljubija, Omarska, and Tomasica. All or most of the individuals who held higher-level positions in the company were detained in Omarska. The mines were stripped and the machinery and heavy equipment (e.g. bulldozers and trucks) were shipped via military helicopter to Serbia. The following men who worked for the iron ore company were killed in Omarska: Engineers Ibrahim Paunovic, Ilija Zdrobic, and Mehmedalija Sarajlic (assistant to the director); Stjepan Maric, head of the computer division; Smajil Zahirovic, lawyer. The director, Ostoja Marijanovic (Serb) was a strategist during the "ethnic cleansing" and carried out crimes in the Prijedor region, according to reports. Human Rights Watch/Helsinki has learned that Slobodan Balaban, director of the Tomasica mine and an assistant to Marijanovic, also allegedly planned the takeover of the town and carried out "ethnic cleansing" in the region.

C Celpak: An independent source, who used to work at Celpak, a local paper product company, and still has a relative working there, told Human Rights Watch/Helsinki on November 14, 1996 that Simo Drljaca, local "Serbian Red Cross" president Srdjo Srdic, and Dragan Kijac, Minister of the Interior, all have financial interest in the company.204 Many Serb individuals who worked for this cellulose factory ended up participating in the "ethnic cleansing." The factory was connected to a network of factories in Bosnia and Croatia, and produced paper and cellulose, distributing it to publishing houses and stationary supply stores, including the prominent Zagrebacka Papirnica.

C Flour mills: Many flour mills in the Prijedor area were privatized early on (before the war) and were taken from their owners when Prijedor was taken over.

C Restaurant and Hotel "Mursel" (next to electric company): The owner of this restaurant and hotel, Muharem Murselovic, was expelled during the war. The hotel, which had been under construction, was then blown up, and the restaurant expropriated.

C "Korzo": Senadin Ramadanovic owned this ice cream shop next to Stari Grad. He was killed in Omarska.

C "Ami": Amir Izetagic owned this bar. He was brutally killed in the beginning of the war

C "Asaf": Asaf Kapetanovic owned this coffee bar/restaurant. During the war, it was burned down, the restaurant was taken over, and Kapetanovic was killed near Omarska. The restaurant, which was next to the warehouses in the center of town, was later blown up.

C Shoe Store: Esad Avdagic owned this shoe store in Prijedor. The store was taken over during the war by a Bosnian Serb policeman named Zoran. Avdagic was expelled, and survived.

C Car sales and repair shop: According to former residents of Prijedor, Simo Drljaca reportedly arranged for the murder of owner Hamdija Kurdovic in 1992 in order to take over his business. An international monitor shared similar information with Human Rights Watch/Helsinki, but stated that to his knowledge, the business had been a "Volkswagen dealership." The former residents also claimed that Drljaca and Slobodan Kuruzovic brought stolen cars and furniture to Prijedor from Croatia during the war, and sold them on the black market.

Simo Drljaca has a number of business interests, and most observers believe that he came about his wealth through illicit activities. Drljaca, according to both IFOR and IPTF sources, owns the "Aeroklub" restaurant, and his wife owns a perfume shop in Prijedor.

Tangled in the Web: Reconstruction Aid and the Architects of "Ethnic Cleansing"

British ODA Response to Information Gathered by Human Rights Watch/Helsinki

Aid to the Prijedor Hospital

197 Final Report of the U.N. Commission of Experts, Annex V, Part 2, Section IX, Subsection D. See also Human Rights Watch/Helsinki, "Bosnia-Hercegovina: The Continuing Influence of Bosnia's Warlords" A Human Rights Watch Short Report, vol. 8, no. 17 (D) for further evidence of similar activities in other parts of Republika Srpska.

198 Ibid.

199 Final Report of the U.N. Commission of Experts, Annex V, Part 2, Section V.A.

200 Roy Gutman, p. 84-87.

201 Final Report of the U.N. Commission of Experts, Annex V, Part 2, Section X, Subsection D.

202 Interviewed in Zagreb, Croatia in December 1992 by Human Rights Watch/Helsinki

203 This list is by no means exhaustive.

204 According to this confidential source, a former resident of Prijedor, the local authorities are in the process of privatizing the Celpak company.

205 Report of Staffdel Garon to Croatia and Bosnia, September 12-17, 1996, House Committee of International Relations, U.S. Congress.

206 Dan de Luce, Reuters World Service, "Mine sites of alleged Serb atrocities may reopen,"January 26, 1996.

207 See also Human Rights Watch/Helsinki, "The Continuing Influence of Bosnia's Warlords," A Human Rights Watch Short Report, vol. 8, no.17 (D), Appendix A.

208 Human Rights Watch/Helsinki interview with confidential source, Prijedor, Bosnia and Hercegovina, November 19, 1996.

209 A recent European Community Monitoring Mission (ECMM) report revealed that opposition party members who operate private businesses are often targeted by government financial auditors, also known as the "financial police." Further, there is some evidence that the SDS-controlled government uses dubious audits as a pretext for firing politically independent directors of state-owned companies or members of other political parties.

210 See also Human Rights Watch/Helsinki, "The Continuing Influence of Bosnia's Warlords" for similar tactics used by the SDS in other areas of Republika Srpska.

211 IPTF report on non-compliance by Simo Drljaca, Chief of Police obtained by Human Rights Watch/Helsinki, May 1996. The presence of "special" police forces is especially concerning, given the frequent use of special forces during the war for "ethnic cleansing" and other human rights abuses.

212 See "Non-Compliance with the Dayton Agreement: The Prijedor Police," p. 31.

213 According to IFOR sources, however, ideas for projects frequently come from the mayors of towns. "The mayors [of the various towns involved] wanted CIMIC to use the public companies," one IFOR source told Human Rights Watch/Helsinki. "They are all controlled by the mob. All the companies are politicized."

214 Source: Television clip, shown to Human Rights Watch/Helsinki by U.N. Civil Affairs.

215 See report by Physicians for Human Rights (PHR), "Medicine Under Siege in the Former Yugoslavia: 1991-1995," War Crimes in the Balkans Series, May 1996 for additional information. The report confirms the information regarding Enes Begic, Esad [Eso] Sadikovic, Osman Mahmuljin, and Zeljko Sikora [spelled Sikalo in the PHR report) mentions in addition several doctors from the Bihac region reported killed in Omarska camp: Jusuf Pasic; Rufad Suljanovic, and Mehmed Suljanovic.

216 PHR, "Medicine Under Siege in the Former Yugoslavia," p. 37-38.

217 Interview with confidential source, November 1996.

218 Roy Gutman, "Death Camp Lists: In Town After Town, Bosnia's Elite Disappeared," Newsday, November 8, 1992; quoted in PHR, "Medicine Under Siege in the Former Yugoslavia," May 1996.