16 August 2003 Saturday Edition

Kosovo

· Serbia mourns two boys, urges UN to end violence in Kosovo
· Gorazdevac victims laid to rest (Beta)
· Holkeri will not permit parallel institutions (B-92)
· Zivkovic: international forces failing for four years (BETA)
· Rugova offers condolences
· Holkeri will not permit parallel institutions (B-92)
· KFOR steps up security in Prizren (Beta)
· Belgrade "won't issue war threat" (B-92)

Region

· Serbia and Montenegro politics: Montenegro opposition uniting
· $10 million loss for Electric Co. in deal with UK firms (B-92)
· Roma protest as city plan demolition of homes (B-92)
· Montenegrin tax introduction realises harmonization (Beta)
· Montenegrin forest devastated (SRNA)
· Tough Call for Serbian Premier (IWPR)

Kosovo

Serbia mourns two boys, urges UN to end violence in Kosovo (AFP)
by Nikola Besevic
Source: AFP English Wire Date: August 15, 2003
GORAZDEVAC, Serbia-Montenegro, Aug 15 (AFP) - Serbian Prime Minister Zoran Zivkovic called on the United Nations Friday to put an end to ethnic violence in Kosovo as Serbia observed a day of mourning after the killing of two young Serbs in the UN-administered province.
Zivkovic and more than 1,000 people attended a religious service for 11-year-old Pantelija Dakic and 19-year-old Ivan Jovovic at the cemetery of Gorazdevac, a Serb enclave surrounded by ethnic Albanian villages in western Kosovo.
"A criminal hand has fired shots that led to the death of a life that had just begun," said a friend of Dakic's during the service held by dignitaries of the Serbian Orthodox Church.
On Wednesday at least one unknown assailant had opened fire at a group of young Serbs swimming in a small river near Zahac, some 60 kilometres (40 miles) west of the provincial capital Pristina.
Zivkovic was the highest Serb official to visit the province since inter-ethnic fighting ended in 1999, after a NATO bombing campaign drove out Serbian forces.
Before his trip to Kosovo, Zivkovic urged the United Nations to put an end to the inter-ethnic violence in the province.
He said that 1,136 Serbs had been kidnapped and 987 Serbs killed in Kosovo since the end of the war between Serbian security forces and Albanian separatists in June 1999.
After meeting with the new head of the UN Mission in Kosovo (UNMIK), Harri Holkeri, he said: "These numbers are sad and awful, and I hope the arrival of Mr. Holkeri will represent a new UNMIK approach in Kosovo."
Zivkovic said he hoped Holkeri, a former Finnish prime minister, would "do everything possible to stop" the violence in the Albanian-majority province.
Holkeri, who will take command of UNMIK in September, arrived in Belgrade Friday for talks with Serb authorities.
In Kosovo, Gorazdevac was surrounded by reinforced NATO-led peacekeeping forces (KFOR) during the funeral, while other KFOR troops accompanied a group of some hundred Serbs coming to the funeral from another enclave, Velika Hoca.
Following the shooting, angry Serb Kosovars had taken to the streets on Thursday, and Belgrade demanded an urgent meeting of the UN Security Council to discuss the issue.
Holkeri vowed the culprits would be found as international police launched a major search for the gunmen.
The incident has been strongly condemned by the United States and European Union.
"By targeting young people and their potential to build a better Kosovo, free from the violence of the past, they attacked Kosovo's future itself," Tom Casey, a State Department spokesman, said in Washington.
The attack has already aggravated tensions between the two sides, with the Serbian government in Belgrade calling it an act of "terrorism" designed as a "welcome programme" for Holkeri.
Serbian Foreign Minister Goran Svilanovic said it was a "tragic confirmation that the UN and the NATO have failed" in Kosovo.
Four years after the end of the war, Kosovo remains wracked with ethnic tension, and more than 200,000 Serbs have fled to escape attacks.
Those who remain -- a number estimated between 80,000 and 120,000 -- live in enclaves protected by the NATO protection force (KFOR).

Gorazdevac victims laid to rest (Beta)
GORAZDEVAC/PRISTINA -- Friday -- Kosovo's Serb community today laid to rest two Serb youths shot dead whilst swimming in Kosovo's River Bistrica two days ago.

First to be buried was Pantelija Dakic, whose funeral was attended by around 1,000 local citizens.

The funeral, in the village of Gorazdevac near Pec, was also attended by Serbian Prime Minister Zoran Zivkovic, deputy Serbian Prime Minister Nebojsa Covic, deputy UNMIK head Charles Brayshaw, Kosovo Minister Nenad Bogdanovic and the majority of MPs from the Kosovo-Serb Return Coalition.

Montenegrin and Coastal Bishop Amfilohije Radovic and members of the Raska and Prizren eparchy led the service and prayer of remembrance, while representatives of international missions have already signed a book of remembrance opened in the village centre.

Bidding farewell to 11-year-old Pantelija, a school friend said the "hand of a criminal pulled the trigger and the burst of fire brought unavoidable death and snuffed out a life which had only just begun".

Wreaths were laid at the grave by relatives, friends and representatives of the Serbian Government and UNMIK.

The village, secured on all sides today by heavily armed international troops, later hosted the funeral of the second victim of the attack - twenty-year-old Ivan Jovovic.

Bishop Amfilohije said that while other Europeans harvest wheat from their fields "we are in Kosovo fields harvesting nothing but death for the last 600 years", he added that the death of the innocent is beginning once again in the province and that a warning should be heeded by minded people and Kosovo's honourable Albanian community.

Speaking at Jovovic's graveside, PM Zivkovic noted that this was the first time Serbian officials had visited Kosovo for four years, saying that the occasion for the visit was "horrifying" and only added to centuries of Serb death, and the deaths of others in Kosovo.

Zivkovic: international forces failing for four years (BETA)

Zivkovic said: "We cannot bring back Ivan and Pantelija, but we can all try together to make their sacrifice the last because this does not depend solely on us who have responsibility in Serbia, as we are only able to reach your village in Kosovo very rarely, and sometimes only secretly.

"The ones who took over responsibility for your safety and your lives are international forces that have failed to fulfill even the beginning of what was their assignment, even after four years," said Zivkovic, reminding mourners that the deaths of Ivan, Pantelija and many others, served as proof that there is still a lot of illegal weaponry in the province.

Expressing hope that new UNMIK governor Harri Holkeri would prove to be a serious politician and the harbinger of a new policy towards Serbs in the province, Zivkovic called on Kosovo-Serbs to have the strength to remain and democracy-minded Kosovo-Albanians to show responsibility for Serbs in Kosovo.

Zivkovic said to Serb mourners: "The Serbian government is responsible for Albanians living in Presevo, Belgrade and Krusevac, and Kosovo authorities have to offer guarantees for your safety".

The bodies of the slaughtered youths were last night released from the UNMIK Forensic Medicine Institute in Orahovac and taken to Gorazdevac in preparation for this afternoon's burials.

After meeting Kosovo's new governor, Harri Holkeri, who is visiting Belgrade prior to taking up his new post, Zivkovic said that UNMIK had guaranteed the safety of Serb officials who will visit Pristina, Kosovska Mitrovica and Gorazdevac.
The prime minister also announced that he had deputised Covic to attend Monday's meeting of the UN Security Council, which will address the situation in Kosovo.

The Serbian Government has declared today a day of mourning for the victims of Wednesday's attack in Gorazdevac.

Rugova offers condolences

Kosovo President Ibrahim Rugova also expressed his condolences to the families of Ivan and Pantelija.

He called on the families to have faith that the perpetrators of this act would be brought to justice, saying in a telegram: "We have sternly condemned the murder of your dearest. I ask you to be sure we will do everything in our power to find and bring to justice those who are responsible for the murder".

Holkeri will not permit parallel institutions (B-92)
BELGRADE -- Friday -- New UNMIK governor Harri Holkeri continued his visit to the state union today, travelling to Belgrade for the first time for talks with Serbian Prime Minister Zoran Zivkovic, Deputy Serbian PM Nebojsa Covic and Serbia-Montenegro Foreign Minister Goran Svilanovic.

Following the talks, Holkeri said he would fully respect UN Security Council Resolution 1244, but that he would not permit parallel institutions to operate in Kosovo.

Zivkovic said that the appointment of Holkeri, whom he described as a serious man, signalled the international community's change of policy towards Kosovo.

The PM said that it was not time to begin a dialogue between Belgrade and Pristina, adding: "We agreed that his mandate should be as short as possible, which means Resolution 1244 will be fulfilled. With that all the problems of Serbs, Albanians and all others in Kosovo will be solved."

Zivkovic also announced that he has deputised Covic to attend Monday's meeting of the UN Security Council, which will address the situation in Kosovo.

KFOR steps up security in Prizren (Beta)
PRIZREN -- Friday - International peacekeepers in Kosovo have stepped up security measures in the Prizren region, KFOR said today.

Spokesman Huben Siegfried told media that he was unable to give further details.
On behalf of international troops he strongly condemned Wednesday's shooting of Serb teenagers near Pec.

Belgrade "won't issue war threat" (B-92)
BELGRADE -- Friday - There will be no military threats or war messages issued over the killing of Serb teenagers in Gorazdevac on Wednesday, Serbia-Montenegro President Svetozar Marovic said today.

"We will call on everyone in the world, particularly the European Union and the United Nations for assistance in finding the perpetrators of this crime through effective and determined action by UNMIK and KFOR," said Marovic.

The federal president added that this was now a condition for stability and peace and the beginning of dialogue between Belgrade and Pristina.

REGION

Serbia and Montenegro politics: Montenegro opposition uniting
Source: EIU ViewsWire Serbia and Montenegro Date: August 14, 2003 Number: 301 Issue: EIU ViewsWire 14 Aug 2003 Edition Name: EIU ViewsWire Page: 14
COUNTRY BRIEFING
FROM THE ECONOMIST INTELLIGENCE UNIT
Opposition parties in Montenegro announced that they are drafting a common strategy to bring down the government of Milo Djukanovic. The Socialist People's Party, the Serb People's Party and the Liberal Alliance are considering their options, which include abandoning parliament permanently. Currently opposition members of parliament are boycotting sessions, in protest at a recent decision to stop broadcasting the meetings on national television. A permanent boycott is not necessarily enough to bring an end to the current government, however, as the ruling coalition has sufficient seats to guarantee a quorum.

$10 million loss for Electric Co. in deal with UK firms (B-92)
BELGRADE -- Friday -- The board of directors of the Serbian Electric Company has scheduled an extraordinary session to establish how the public company's dealings with London-based firms has caused Serbia to lose up to 10 million dollars.

According to a company statement, chairman of the board Nikola Rajakovic convened the meeting after receiving a Serbian Energy Ministry report noting damages sustained during business deals between the management of Serbian Electric and British companies EFT (Energy Financing Team) and Interface. The meeting will be aimed identifying those responsible and proposing appropriate government measures.

The Energy Ministry's report explains that the dealings with the two companies caused Serbia to suffer a loss of between 4.7 and 10.7 million dollars.

In a statement to B92, executive manager of EFT Svetislav Bulatovic dismissed the ministry's claims and insisted that the opposite was in fact true, with the state profiting from the deal.

Roma protest as city plan demolition of homes (B-92)
BELGRADE -- Friday -- Around a hundred Roma residents of the Grmec settlement in Zemun are today protesting in front of Belgrade's Federation Palace over the decision to demolish their homes.

Speaking to B92, Severdzan Alijevic, president of the City Committee of Roma Congress, said that representatives of his party have met with Vladan Djuric, advisor to the minister for human rights and ethnic minorities, who promised to contact the city assembly on their behalf.

However, the protestors have yet to be addressed and, according to Alijevic, the Directorate for City Land has informed them that the location of their homes has already been sold to foreign investors.

Grmec's Roma have been informed that 34 houses are to be demolished in their settlement. They have not been offered alternative accommodation.

Montenegrin tax introduction realises harmonization (Beta)
PODGORICA -- Friday -- The Montenegrin Government has announced that today's implementation of the Customs Tariff Decree sees the introduction of export tax to the tiny coastal republic for the first time ever.

According to a government statement, the taxes will initially apply only to scrap metal and leather, with greater customs taxes being introduced for around 8,000 products, including meat, dairy products, fruit, vegetables and coffee.

The new tariffs achieve harmonisation within the state union, with taxation levels increasing by 20 to 30 per cent from previous percentages of between zero and five.

Wholesale changes for Glas Javnosti (FoNeT)
BELGRADE -- Friday -- Radisav Rodic, owner of daily Glas Javnosti, has today decided to dismiss a section of the publication's management in an effort to urgently consolidate the newspaper.

According to a statement signed by Rodic and "a group for revitalisation of the paper's business": "despite constant blackmail and pressure, the founder will do everything necessary to ensure daily Glas javnosti continues to be published. It will soon receive a new graphic design and content amendment, as well as a reorganised editorial board".

Today is the first time that the daily has not appeared on newsstands and, according to the statement, this is due to "accumulated difficulties facing the founder and the staff after numerous incidents of pressure and extortion in the last two years, which led to the current situation which could not be overcome".

Montenegrin forest devastated (SRNA)
PODGORICA -- Friday - Around two thousand acres of woods and undergrowth have been destroyed in the fires that have been raging across Montenegro for the past week.

Assistant Agriculture Minister Milosav Andjelic said today that the damage caused by fires this year is expected to be much greater than the 1.5 million euro cost of fires two years ago, when a thousand acres of forest were razed.

The fire services report that most of the fires are now under control; although Crisis Centre manager Ljubomir Djurovic said that fires in the Danilovgrad municipality remain a danger.

Djurovic told Beta that three seperate fires are still burning in the area and that one in the village of Zagarac was heading for nearby houses.

However, Djurovic said he expects the fire to be contained soon: "With a joint action of the firemen, army, police and villagers, we will manage to contain the fire tonight".

Tough Call for Serbian Premier (IWPR)
Premier likely to duck out of prosecuting senior officials accused of money-laundering.
By Zeljko Cvijanovic in Belgrade (BCR No 453, 15-Aug-03)
Serbian prime minister Zoran Zivkovic is on the verge of failing an important test of his ability to crack down on powerful business interests.
Zivkovic has been under pressure to act against two senior officials since they were accused of money-laundering last month by former central bank governor Mladjan Dinkic.
The allegations came at a time when the government was already under pressure from reformers at home as well as the international community to curb the influence of a powerful business group.
The two men named in a Hungarian police document which Dinkic released to journalists, including IWPR, at a July 25 press conference are Zivkovic's security advisor Zoran Janjusevic and Nemanja Kolesar, director of the Serbian government's Bank Recovery Agency. The document accused them of laundering 1.02 million euros through a Seychelles-registered company.
Both man have strenuously denied any wrongdoing, and they warned Dinkic that he would have to back up his allegations.
Immediately after Dinkic went public, the Serbian interior ministry pledged to launch an investigation. It confirmed that the Hungarian document was authentic.
IWPR has now learned unofficially that a police investigation is under way, and that its conclusions may shortly be forwarded to the district prosecutor's office. A source at the latter said they were awaiting instructions from the police.
In Belgrade, it was widely expected that Zivkovic would push for an investigation and that prosecutions would very likely ensue.
But IWPR has learned from independent sources close to the government as well as to Zivkovic's Democratic Party, DS, that he is close to deciding simply to remove the two men from their posts without taking legal action against them.
"Judging by what has been heard on both sides in the past few days, they will go, but they will not be put on trial and their money will not be seized from them," said a DS source.
Belgrade analysts believe that if the two men depart without a fuss, it will be a clear sign that Zivkovic has had to accept a compromise with a powerful financial lobby that backed the late prime minister Zoran Djindjic - and before him, Serbian leader Slobodan Milosevic.
Both Kolesar and Janjusevic are regarded as part of this grouping. The former won his post as a financial adviser to Djindjic because of the skills he had gained at Delta Bank, owned by Milosevic-era financier Miroslav Miskovic. Janjusevic worked for the Bosnian Serbs' secret police in 1992-93.
Many financiers and businessmen made a smooth transition from supporting Milosevic to backing the new government led by the Democratic Opposition of Serbia, DOS, which came to power in 2001, aligning themselves with Djindjic.
Since Djindjic's murder in March this year, the Serbian government has been under pressure both from reformers at home and the international community to rein in the influence of powerful financiers and businessmen. Many internationals view this business lobby as an obstacle to political stability, because of its close links to part of the ruling DOS coalition.
Scandals such as the European Union's anger over illegal imports of sugar have added to this pressure. The Seychelles affair - however true the allegations prove to be - only serves to focus the spotlight on the connections between government and powerful businessmen.
The reformist party G17 Plus - of which Dinkic is deputy head - has called for prosecutions, and has asked the district prosecutor to take the case on. Vojislav Kostunica's Democratic Party of Serbia, DSS, has added its voice to the demands.
There is a storm raging within the government itself. At a cabinet meeting on August 6, three out of the six deputy prime ministers insisted that Kolesar and Janjusevic be sacked.
The impending decision represents a quandary for the prime minister. Whatever he does will have a downside for his own prospects as premier.
The trial, or the confiscation of money that has allegedly been misused, could be a signal to powerful businessmen that their affairs, too, might come under scrutiny. Some of them exert influence on areas outside business, such as the secret police and pro-government parts of the media.
DOS, which has links to the business lobby, would be in a position to obstruct Zivkovic since they are coalition partners. And Zivkovic's own DS might suffer because some financial backers would withdraw their support.
Opinion polls already show the DS losing in popularity, and it now ranks third behind the DSS, with G17 Plus in the lead.
Many analysts agree that the prime minister is simply not strong enough to force a showdown right now, and needs more time to build his own power-base.
Yet time is exactly what he does not have. If he does not take the financial lobby on soon, and there are more scandals, analysts say he could lose next year's general election because his government will be perceived to have failed.

Zeljko Cvijanovic is a regular IWPR contributor from Belgrade