Mr. Izetbegovic has repeatedly denied the charges, most recently in a local press interview. ''It would be nonsense to claim that there is no corruption, or that it is irrelevant, in a country that has just come out of the war,'' he said, adding that Bosnia is a country ''which does not have established borders, where joint institutions are still not functioning, and which has at least two armies and two police forces.''

The Dayton agreement, which was signed by Muslim, Croatian and Serbian warring factions in 1995, called for the creation of a single state and the return of two million refugees and displaced people to their homes. But Bosnia remains partitioned into three antagonistic ethnic enclaves.

Serb-held Bosnia continues to operate as a separate entity. The internationally created Muslim-Croat Federation has no authority and has been unable to raise revenues. The two million refugees and displaced people have not gone back to their homes. And the Office of the High Representative, the chief civilian international agency in Bosnia, has been reduced to promising money and aid projects to towns and cities that say they will allow some refugees to return, promises that are usually never kept.

''Dayton stopped the violence, but it did not end the war,'' said Jacques P. Klein, the chief United Nations representative here, ''and the war is still being fought bureaucratically through obfuscation, delay and avoidance by a group of leaders who do not want to lose power. Bosnia and Herzegovina is a patient on life support assistance -- political, military and economic.''

International donors say the endemic fraud is making it harder to justify continued aid levels. Without the huge infusions of money, it is unlikely that the Muslim, Croatian and Serbian enclaves will be able to continue to pay pensions and salaries and reconstruct the country. The Sarajevo Government, for instance, has asked the World Bank for loans to make pension payments.

''Time is running out,'' said James Lyon, director of the Crisis Group, an independent research organization. ''The international community has no enforcement mechanism. The international administrators beg, plead, cajole and in some case engage in what looks like bribery, promising cities infrastructure projects if they allow some refugees to return. This tactic might work if we continue the present aid levels, about a billion dollars a year, over the next 20 years. But as aid declines, what will make these people even promise to comply?''

Tuzla, a Muslim city, is one case study of widespread corruption that infects many local governments, the report says. The investigators' report charges that $200 million was missing from this year's budget, in addition to $300 million missing over the last two years.