Jerko Ivankovic-Lijanovic and Milorad Bahilj, Agriculture and Trade ministers in the Federation entity government, were among 11 persons arrested on Wednesday on suspicion of tax evasion and fraud.

Aside from Jerko Ivankovic-Lijanovic, his brother, Mladen, a lawmaker in Bosnia’s state-level House of Representatives, and other members of the family were also arrested.

The State Investigative and Protection Agency, SIPA, said it suspected the group of avoiding taxes and other fraudulent actions, by which they had unlawfully gained around 6 million euro.

Kristina Jozic, spokesperson of SIPA, said the group “through their illegal criminal activities, gained an unlawful benefit of over 11.6 million KM [5.9 million euro], which came from unpaid or evaded taxes, improper use of incentives for development of production and agricuture and from selling stolen stocks of the Federal Department of Goods Reserves”.

The raids and arrests were conducted in Sarajevo, Mostar, Siroki Brijeg and Grude at 17 sites, in 14 private facilities and at three companies – the Lijanovici family company, Kora-fin in Siroki Brijeg and Velmos company in Mostar.

“Aiming to cover up the origin of their illegally gained property, they were returning the given amount of money…. by giving loans and buying shares in other legal subjects, paying in cash,” Jozic noted.

Lijanovici is one of the largest meat companies in Bosnia and Herzegovina. It is owned by the family of that name, many of whom belong to the People’s Party Work for Progress, NSRZB, whose president and vice-president are the two brothers, Mladen and Jerko Ivankovic-Lijanovic.

The State Prosecutor’s Office said that the case, codenamed “Meso” [“Meat”], was one of the most complex cases of organized crime uncovered in post-Dayton Bosnia and Herzegovina, referring to the 1995 peace accords that ended the four-year war.

Bosnia’s tax authority also participated in the investigation of SIPA and the Prosecutor in the Meso case. In some of its earlier reports, the tax office had noted that several smaller firms related to Ivankovic Lijanovic’s company had cost the state budget several million euro by avoiding VAT.

Last year, a BIRN investigation revealed that the minister Jerko Ivankovic-Lijanovic was under suspicion of approving agricultural subsidies for members of his party.