Trial of Slavica Injac: Banking Agency was too lenient with 'Bobar Bank'

SARAJEVO, (Patria) - Slavica Injac, former director of the Banking Agency of Republika Srpska, accused of abuse of office, during the examination of economic experts, who stated that the Agency was too lenient with 'Bobar Bank', said that they did everything within their jurisdiction.

The true state of affairs at 'Bobar Bank' was unknown to the Banking Agency until 2014, said Slavica Injac, accused of abuse of position or official authority in the case of the collapse of 'Bobar Bank', at a hearing before the Banja Luka District Court today.

Slavica Injac cross-examined economic expert Radomir Šalić today, who testified about the business operations of 'Bobar Bank' on behalf of the Prosecutor's Office of Bosnia and Herzegovina, BIRN BiH reports.

The defense insists that the Banking Agency did everything within its jurisdiction concerning that bank before its collapse.

'The Agency regularly monitored the bank's exposure to related parties. How did we tolerate them when we issued increasingly strict orders every time? If the bank had complied with our orders, it would have been saved,' Injac said while questioning the expert.

Šalić also claimed during the cross-examination that the Banking Agency of Republika Srpska was lenient towards the bank's management and its supervisory board.

'In my opinion, you took measures, but those measures were ineffective. You could have seen from their behavior who you were dealing with and removed them from those positions in accordance with the law. How did no one question how such a large loan was given to a 'loser'?' said Rade Šalić.

The defense claims that the Banking Agency introduced temporary management as soon as the bank became illiquid.

'The essence of the trial is to see what the Banking Agency knew and whether it took adequate measures accordingly,' said the presiding judge Branimir Jukić.

In March 2017, the Prosecutor's Office of BiH filed an indictment in the 'Bobar Bank' case against 16 individuals. They are accused of causing damage of 122.5 million convertible marks (KM) through organized action, which ultimately led to the collapse of 'Bobar Bank'.

The trial of Slavica Injac was transferred from the Court of Bosnia and Herzegovina to the District Court in Banja Luka in October 2018. She is accused of knowing that the bank was operating with high credit risk as the director of the Banking Agency of RS, but doing nothing about it.

The trial will continue on June 30.