Yugoslavia sacks minister in arms to Iraq scandal

Belgrade has cracked down against supporters of the former Milosevic regime who have been accused of using state-run firms to help Iraq overhaul its air defences in defiance of UN sanctions.

Reacting to the allegations made public by the United States and its Nato allies, the Yugoslav government sacked General Ivan Djokic, a deputy defence minister, and Jovan Cekovic, the head of the state import-export company Jugoimport-SDPR. General Djokic was responsible for weapons and arms equipment trading for the Yugoslav military.

The government, meeting in emergency session late on Tuesday, promised a quick and thorough investigation into the case and ordered the closure of the Jugoimport office in Baghdad. Belgrade is afraid that the allegations might ruin its efforts to improve ties with the international community since Slobodan Milosevic fell from power two years ago. Yugoslavia is only a step away from joining Nato's Partnership for Peace programme.

According to details leaked to the Serbian press, weapons and military equipment from the Orao military factory in Bijeljina were sold to Iraq with Jugoimport acting as intermediary. Bijeljina is located in Republika Srpska, the Serb entity of Bosnia-Herzegovina.

Military experts say that Orao provided spare parts for Russian-built Iraqi fighter jets and could help overhauling multiple rocket launchers and anti-aircraft systems.

The affair came to light when an international inspection of Orao by Nato-led troops last week uncovered photo-graphs and documents allegedly giving details of the military co-operation with Iraq.

The US State Department spokesman Richard Boucher said there was "clear evidence" that the Orao and Jugoimport have been "refurbishing military aircraft for Iraq" to build up defences against US attacks.

The inspection report, which was handed over to Bosnian and Yugoslav authorities, refers to instructions to Iraqis on how to conceal the equipment and spare parts marked with the Orao insignia in case of UN inspections.

The company reportedly offered to dismantle all equipment before any UN inspection and to reassemble it 10 days afterwards.

Analysts saidcontinuing military co-operation with Iraq at such a sensitive time appears to be the work of mavericks who survived the down- fall of the former president. They turned into private arms dealers, using their connections in the Balkans and in Baghdad. Top government official Nebojsa Covic said the Milosevic supporters were trying to torpedo Yugoslavia's foreign policy. But until now, the new authorities have refrained from open confrontation with the Milosevic-era diehards.

Yugoslavia backed the war against terrorism after the 11 September attacks and President Vojislav Kostunica has repeatedly denied any links with the countries designated as Western enemies.

A concrete sign of Yugoslavia's stand was the recent delivery to the US of confidential files giving details of Yugoslav military co-operation with Iraq over the years.