SERBIA: FINGERPOINTING CONTINUES IN MAJOR ORGANIZED CRIME

C O N F I D E N T I A L SECTION 01 OF 03 BELGRADE 000035 SIPDIS AMEMBASSY ASTANA PASS TO AMCONSUL ALMATY AMEMBASSY ANKARA PASS TO AMCONSUL ADANA AMEMBASSY BELGRADE PASS TO AMEMBASSY PODGORICA AMEMBASSY ATHENS PASS TO AMCONSUL THESSALONIKI AMEMBASSY MOSCOW PASS TO AMCONSUL VLADIVOSTOK AMEMBASSY BERLIN PASS TO AMCONSUL DUSSELDORF AMEMBASSY MOSCOW PASS TO AMCONSUL YEKATERINBURG AMEMBASSY BERLIN PASS TO AMCONSUL LEIPZIG AMEMBASSY HELSINKI PASS TO AMCONSUL ST PETERSBURG E.O. 12958: DECL: 2020/02/24 TAGS: PREL PGOV SNAR KCRM SR MW SUBJECT: SERBIA: FINGERPOINTING CONTINUES IN MAJOR ORGANIZED CRIME CASE REF: 10 BELGRADE 29; 10 PODGORICA 25; 09 BELGRADE 212 09 BELGRADE 469 CLASSIFIED BY: Mary Warlick, Ambassador, State, EXEC; REASON: 1.4(B), (D) Summary -------------- ¶1. (C) Serbian efforts to crack down on narcotics trafficking and organized crime have led to several arrests, including in the Operation Balkan Warrior case, which began with Serbian cooperation in seizing two tons of cocaine in October 2009. Montenegrin-born organized crime figure Darko Saric has been implicated in the case, but cooperation between Montenegro and Serbia has faltered as both sides have traded accusations that there is no will to see the case through. The case became further complicated with press allegations of high-level Serbian Interior Ministry links to Saric. Our police contacts tell us there is some truth to the rumors and they are seeing signs of political interference. However, Interior Minister Dacic, who is concerned about his reputation, and the Presidential Administration, which is eager to achieve progress in the fight against organized crime, are unlikely to let the case fall apart. End Summary. Serbia Steps up Anti-Narcotics Efforts -------------- ¶2. (SBU) Serbian police have stepped up domestic efforts and international cooperation over the past few months to combat narcotics trafficking. Serbian authorities cooperated with the U.S. and other countries in the seizure of over two tons of cocaine off the coast of Uruguay in October 2009 in Operation Balkan Warrior. That same month, Serbian police conducted the nationwide Operation Morava, to arrest domestic drug dealers. Since October, the Morava operation has continued, and there have been periodic arrests in connection with Operation Balkan Warrior. Both operations were highly publicized, and Interior Minister Ivica Dacic - as well as President Tadic and other senior GOS officials -- regularly mentions them, noting that combating organized crime, narco-trafficking, and corruption are their highest priorities. As further examples of his efforts, Dacic also touts regular cooperation with Bosnia, Montenegro, Croatia, and EU countries (Ref A). ¶3. (SBU) On January 28, press reports indicated that Serbia had requested an Interpol Red Notice for Montenegro-born Serbian organized crime figure Darko Saric in connection with the Balkan Warrior Case (Ref B). Serbian press reported that Montenegrin authorities had searched Saric's property in Montenegro but failed to find Saric himself. Serbian police also arrested five more individuals connected to the case. Press reported that on February 8, Montenegrin police arrested two Saric associates, Goran Sokovic and Dejan Sekulovac, both Montenegrin citizens who could therefore not be extradited to Serbia. Serbia's Special Court for Organized Crime is currently conducting a pre-trial investigation before filing formal charges. On February 16, the Special Court ordered seizure of Saric's Serbian assets. Mudslinging with Montenegro -------------- BELGRADE 00000035 002 OF 003 ¶4. (SBU) Trouble between Serbia and Montenegro appeared shortly after the February 8 Sokovic and Sekulovac arrests, when it became public that Saric was seeking Montenegrin citizenship. (Saric, a Serbian citizen, reportedly began the process of renouncing Serbian citizenship and seeking Montenegrin citizenship shortly after Balkan Warrior began. In order to complete this process, the Serbian government would have to release him from Serbian citizenship, which is not likely under current circumstances.) On February 9, the press quoted Montenegrin Prime Minister Milo Djukanovic as saying that there were no obstacles to Saric obtaining Montenegrin citizenship, a statement widely interpreted in Serbia as Montenegrin willingness to protect Saric from prosecution. Montenegro subsequently disregarded a Serbian request for extension of detention and released Sokovic and Sekulovac, citing a lack of evidence from Serbia. ¶5. (C) This action set off a string of well-publicized barbs between Serbian and Montenegrin officials. Serbian officials accused Montenegro of lacking the will to cooperate and of protecting Saric. Montenegrin officials were quoted accusing Serbia of not arresting Saric when they had the chance and of trying to "destabilize" Montenegro. On February 17 the Montenegro police stated publicly that Saric was not in Montenegro while the Serbian police continued to insist that all information pointed to him being there. (Note: Our contacts tell us that Serbian police and officials in reality agree that Saric is not in Montenegro.) In order to resolve the problems of cooperation, Montenegrin Justice Minister Miras Radovic will travel to Belgrade on Thursday, February 25 to meet Serbian Justice Minister Snezana Malovic. ¶6. (C) In a February 22 meeting with DAS Stu Jones in Belgrade, Foreign Minister Vuk Jeremic said the GoS was serious about taking on the fight against organized crime. Jeremic asked that in addition to the intelligence support the DEA is giving the GoS, Washington now needed to give Serbia "political" support in order to resolve the political difficulties Serbia was having with Montenegro over the case. Jeremic said both President Tadic and Presidential Advisor Miki Rakic had taken on this organized crime fight at personal risk to themselves, stressing that the criminals had significant political influence due to the "billions of dollars" at their disposal. DAS Jones also raised the case during a February 23 meeting with Tadic's National Security Advisor, Miki Rakic, who said indicated Serbia was reluctant to share information with Montenegro at this early stage of the case due to concern that doing so might cut off current GOS investigation efforts. Rakic said three key suspects in the case had been released by the Montenegrin police despite notices from Argentina and Serbia in two cases, and Denmark and Serbia in the third. Rakic welcomed the meeting later this week between the two countries' justice ministers and emphasized that Serbia had no political agenda apart from achieving real results in this case. Leaks and Links with Serbian Police? -------------- ¶7. (SBU) Meanwhile, the local media has speculated that there were leaks in the investigation and possible ties between Interior Minister Dacic's staff and Saric. On February 5, Belgrade daily Blic alleged that Dacic Chief of Cabinet Branko Lazarevic had ties to Saric, noting that two close Saric associates were on the managing board of a company owned by Lazarevic's brother-in-law Nikola Dmitrijevic. Lazarevic himself once held a 40% share in the company, which he reportedly sold before the Saric associates invested. Press shortly afterward began reporting that Saric had been tipped off that he was a suspect in the Balkan Warrior case, BELGRADE 00000035 003 OF 003 enabling him to evade arrest and probably otherwise hamper the investigation. Dacic told reporters on February 11 that he had ordered an investigation into the allegations and would resign if it turned out that his chief of staff had links to organized crime. He emphasized that he completely supported the investigation. ¶8. (C) The Ministry of Interior is being extremely tight-lipped about the allegations against Lazarevic, but some police contacts tell us they are concerned about political interference in the Saric investigation now that Dacic's closest advisor has been implicated. Some contacts have told us that there is substance to the allegations about connections to Lazarevic (a businessman before taking the job as Dacic's top advisor). According to contacts, Dacic made Lazarevic responsible for the continued Balkan Warrior investigation, including determining if there were any leaks from Interior. Lazarevic assigned the latter task to MUP's Internal Control Chief, Dragoljub Radovic, who our contacts tell us was instructed to investigate every police officer on the Balkan Warrior case. (Note: Radovic has an uneasy relationship with Police Director Veljovic, who is popular within the ranks of police.) Police working on the case are now reportedly fearful that they may be transferred, forcing new officers to start from scratch and weakening the investigation. Comment -------------- ¶9. (C) The battle against organized crime that President Tadic announced in March 2009 (Ref C) has produced notable breakthroughs, including the June 2009 arrest of mafia kingpin Joca Amsterdam (Ref D) and the October 2009 cocaine seizure in Balkan Warrior. There are significant obstacles to success in the Saric investigation, however. Conflicts within the Ministry of Interior, where the old guard resents and distrusts Dacic and his inner circle of advisors, at times impede work and give rise to suspicions that allegations such as those against Lazarevic are motivated by personal animus. We judge it unlikely that Dacic, fresh from his visit to the United States, will allow even his most trusted advisor to damage his hard-won reputation as an effective Interior Minister; to preserve his credibility Dacic will have to ensure that the allegations against Lazarevic are fully investigated, and take decisive action if they are substantiated. Strained relations with Montenegro, due in part to its establishment of diplomatic relations with Kosovo, have also made it more difficult to work this challenging transnational case. The attention being given to this case by President Tadic's closest advisors, as well as his own personal engagement, suggest that this has become a serious priority for the government. We are also hopeful that the engagement of Justice Minister Malovic, a pragmatic interlocutor who generally avoids politicizing sensitive issues, will help get cooperation with Montenegro back on track. End Comment. WARLICK