Milosevic faces fraud probe

One of Mr Milosevic's residences destroyed by Nato in 1999

Serbian authorities say they are investigating the former president of Yugoslavia, Slobodan Milosevic, on allegations of fraud during his term in office.

The probe centres on alleged false statements made by Mr Milosevic about his financial assets which enabled him to procure a luxury residence in the upmarket Dedinje neighbourhood of Belgrade.

Markovic is part of a line at the end of which, I believe, we will find Slobodan Milosevic himself

Cedomir Jovanovic, DOS parliamentary leader

Serbian Interior Minister Dusan Mihajlovic told Belgrade's B92 radio that Mr Milosevic got a house he did not deserve on the basis of documents he had forged himself.

Mr Mihajlovic did not specify when the former president could be questioned.

But the BBC's Paul Wood in Belgrade says the government is doing nothing to dampen rumours of an arrest, perhaps in an attempt to prepare public opinion in Serbia for Mr Milosevic's prosecution.

Justice minister Vladan Batic has said the arrest of Mr Milosevic's former police chief, Rade Markovic, on Saturday has tightened the noose around the former leader's neck.

War crimes tribunal

Mr Milosevic is being investigated on several other alleged offences, including the disappearance or killing of political dissidents.

But the interior minister, Dusan Mihajlovic, said building a case on those offences required more time and effort.

President Kostunica has urged caution

Serbs are well aware that the United States Congress has set a deadline of 31 March for the government in Belgrade to undertake to hand Mr Milosevic over to the UN war crimes tribunal in The Hague.

Failure to do so could result in losing millions of dollars in American aid.

But President Vojislav Kostunica opposes extraditing his predecessor.

Instead, the authorities have promised to try him at home.

Spy chief

Mr Markovic, who headed the secret police from 1998 until January 2001, has been accused by various human rights groups and Milosevic opponents of being behind a series of political killings.

His arrest is in connection with an alleged attempt in 1999 to murder the Yugoslav opposition politician, Vuk Draskovic, four of whose colleagues died when a truck crashed into his motorcade.

Markovic: authorities say things will unravel

Mr Markovic could face a murder charge, punishable by at least 10 years imprisonment or the death penalty.

But he has also been accused of involvement in several other high-profile killings and kidnappings in the later years of President Milosevic's 13-year rule.

Unsolved crimes

Apr 99 - Opposition journalist Slavko Curuvija shot dead outside home

Oct 99 - Vuk Draskovic escapes death in car crash

Jan 00 - Assassination of warlord Zeljko Raznjatovic (Arkan)

Aug 00 - Disappearance of Ivan Stambolic

The Belgrade-based Humanitarian Law Centre (HLC) says it has documentary evidence that Mr Markovic was behind the 1999 killing of newspaper editor, Slavko Curuvija, a harsh critic of the former president.

The parliamentary leader of the Serbian Democratic Opposition (DOS) said the arrest would ultimately lead the new authorities to the former president.

"Markovic is not the last step in the process of restoring the rule of law," Cedomir Jovanovic told Politika newspaper.

"He is part of a line at the end of which, I believe, we will find Slobodan Milosevic himself."