Milosevic: 'Misrule' under investigation

Milosevic is under investigation for years of misrule

The first legal steps against former Yugoslav President Slobodan Milosevic appear to be underway.

The new government in Belgrade has made it clear that it wants to put Mr Milosevic on trial for what it sees as years of misrule and massive corruption.

Mr Milosevic could face charges including illegally taking state funds abroad and illegal real estate dealing.

There could be further investigations into electoral fraud and political killings allegedly ordered by Mr Milosevic.

The International War Crimes Tribunal in The Hague also wants to try Mr Milosevic, but on charges of crimes against humanity

And the tribunal is increasing the pressure on Belgrade to hand over the former president.

Missing millions

The latest investigation is into press claims that Mr Milosevic spirited nearly 200kg of gold out of the country directly after his overthrow in October last year.

Yugoslav President Vojislav Kostunica is adamant that Milosevic will not go to The Hague

The allegation is that Mr Milosevic sold the gold and transferred the proceeds to secret bank accounts in Cyprus.

A briefing document for ministers by the German Federal Intelligence Service written at the end of last year alleged that Mr Milosevic has personal assets in Russia, China, Cyprus, Greece, Lebanon and South Africa.

The report suggested that his financial holdings in Switzerland alone are in the region of $100m.

Bank investigation

At the end of last year, the central bank in Yugoslavia began moves to recover billions of dollars in state funds which it says were sent out of the country during Mr Milosevic's rule.

UN chief prosecutor Carla del Ponte wants to try Milosevic for war crimes in The Hague

A special bank commission is trying to trace what reports say could be up to $4bn sent abroad during the early 1990s.

The governor of the new National Bank of Yugoslavia, Mladjan Dinkic, told one Belgrade newspaper that the money was despatched by the sackload at a time of hyper-inflation. Some has been returned, but some was apparently left in private accounts abroad.

Earlier in February this year, the Yugoslav Government set up a special commission to investigate possible financial abuses committed during Mr Milosevic's 11 years in power.

The commission is to look specifically into the all privatisations and leases of state-held businesses and property in the past 12 years.

It is alleged that the privatisation process in Yugoslavia was largely used to enrich Mr Milosevic and his cronies.

War crimes not financial crimes

Officials at the International Criminal Tribunal for the Former Yugoslavia have indicated that Mr Milosevic's trial in Belgrade for financial corruption would not satisfy them.

Florence Hartmann, the spokesperson for the UN war crimes prosecutor Carla del Ponte, told BBC News Online the new investigation did not affect the tribunal.

"Milosevic is indicted for crimes against humanity. [The investigation] does not affect Yugoslavia's obligation to transfer Mr Milosevic to The Hague for trial," Ms Hartmann said.

The tribunal is asking European Union ministers to link aid to Yugoslavia to Belgrade's co-operation with The Hague.

The Hague tribunal may have some time to wait before it will see Mr Milosevic in the dock. New Yugoslav President, Vojislav Kostunica, has been consistent in refusing to agree to send his predecessor to The Hague.