BOSNIA - SIA FILES CRIMINAL REPORT AGAINST DODIK

C O N F I D E N T I A L SARAJEVO 000206

SIPDIS

DEPARTMENT FOR EUR(JONES),EUR/SCE(FOOKS/MCGURE); NSC FOR
HELGERSON/WILSON; OSD FOR BEIN

EO. 12958: DECL: 01/01/2017
TAGS: PGOV PREL PIN PHUM KDEM KJUS CRM BK
SUBJECT: BOSNIA - SIA FILES CRIMINAL REPORT AGAINST DODIK
AND ASSOCIAES

REF: SARAJEVO 87 AND PRIOR

Classified By: Ambassador Charles English. Reasons 1.4(b) and (d).


1. (C) The press reported on February 19 that the State
Investigation and Protection Agency (SIPA) filed a criminal
report with the State Prosecutor's Office that implicates
Republika Srpska (RS) Prime Minister Milorad Dodik and
several associates in corruption associated with RS
government procurements. According to press reports, SIPA
alleges that approximately 100 million USD was stolen. The
SIPA report, which was not unexpected, could provide the
basis for the State Prosecutor's Office to open a formal
investigation into Dodik. Until this point, the State
Prosecutor's Office has been conducting a preliminary
investigation (Reftel).


2. (C) A contact at the State Prosecutor's Office confirmed
that SIPA had completed its criminal report, and that the
report alleged Dodik and 10-15 others had engaged in criminal
activities associated with at least seven, possibly, eight
different "procurement transactions." These included
contracts associated with constructing and outfitting the RS
government building in Banja Luka. According to several
sources, the report was signed out of SIPA by Assistant
Director and Head of the Criminal Investigation Division
Dragan Lukac rather than by SIPA Director Mirko Lujic. Lukac
was reportedly concerned that Lujic, a Serb, would have sat
on the report rather than forward it to the State
Prosecutor's Office. It is unclear who leaked the report,
which was supposed to be confidential, but it was likely
someone within SIPA. Dodik has not yet commented publicly on
the report, but we were told that he has called Lujic to
complain about it.

Next Steps
--------------


3. (C) The State Prosecutor's Office must now review the
report in order to determine whether a) there is no basis for
opening an investigation or investigations; b) there is a
basis for opening a formal investigation or investigations;
or c) additional information is required from SIPA before
making any decision. The State Prosecutor's Office may opt
to open an investigation into one or all of the individuals
named in the report, and progress in one investigation may
prompt a decision to open additional investigations at a
later date. The criminal activities being investigated are
complex, so it will likely require several months before any
indictments are filed, if they are filed. During this
period, we anticipate additional requests from the State
Prosecutor's Office for RS government documents, and perhaps,
for sworn statements from RS officials. Until the State
Prosecutor's Office has had the opportunity to review the
SIPA report, however, it is too early to assess how this will
play out.
ENGLISH