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Last Updated: Thursday, 18 August 2005, 14:53 GMT 15:53 UK
Karadzic 'ally' handed to Bosnia
Radovan Karadzic
Radovan Karadzic is said to have received help from Mandic
A prominent Bosnian Serb businessman suspected of involvement in organised crime has been extradited from Montenegro to Bosnia, officials say.

Momcilo Mandic, arrested in Montenegro on Wednesday, is being held in a jail in Sarajevo. He denies any wrongdoing.

International officials in Bosnia also accuse him of helping former Bosnian Serb leader Radovan Karadzic, who he served as a minister, to evade capture.

Mr Karadzic was indicted for genocide by the UN war crimes tribunal in 1995.

Mr Mandic was detained by local police at his apartment in the Montenegrin town of Budva, officials said.

Assets frozen

John McNair, a prosecutor for the Bosnian State Court's department on organised crime, corruption and terrorism, said he had been handed over to Bosnia within hours.

"This is an example of effective regional co-operation between law enforcement agencies in Bosnia-Hercegovina and Serbia-Montenegro leading to the transfer... of an important suspect in an organised crime investigation," he said.

Mr Mandic is under investigation for money laundering and organised crime allegedly linked to a bank he owned in Bosnia, the Privredna Banka Srpsko Sarajevo.

The bank was closed down by Bosnia's top international envoy, Paddy Ashdown, last year as part of a crackdown on alleged associate of Mr Karadzic. Mr Mandic's assets were also frozen.

Mr Mandic is also on a list of people banned from entering the European Union and the US because of their support for war crimes suspects.

Mr Karadzic and the former Bosnian Serb military commander, Ratko Mladic, are the international war crimes tribunal's most wanted fugitives. They are accused of genocide, war crimes and crimes against humanity for the persecution of non-Serbs in Bosnia.

Serb fugitive network arrest
08 May 03 |  Europe
Karadzic family assets frozen
07 Jul 03 |  Europe
Karadzic 'network' under attack
07 Mar 03 |  Europe
Country profile: Bosnia-Hercegovina
01 Oct 03 |  Country profiles
Country profile: Serbia and Montenegro
10 Aug 05 |  Country profiles

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