SARAJEVO, Bosnia-Herzegovina (AP) _ A former interior minister and part-owner of a bank in which the U.S. government lost $900,000 was arrested at the offices of his import-export company, police said Saturday.

Alija Delimustafic, 46, was arrested Friday, but Sarajevo police refused to specify the charges. The spokesman for the U.N. police in Bosnia, Douglas Coffman, quoted Bosnian authorities as saying the charges ``are related to organized crime.''

Coffman gave no further details.

Delimustafic, a former policeman, was appointed interior minister in 1990 and later served as foreign trade minister during the 1992-1995 Bosnian war. After the war, he became a principal owner of the BH Banka, one of the country's largest banks, which went bankrupt in 1998.

In a report released last month, the U.S. General Accounting Office said the U.S. government had not recovered $900,000 in U.S. embassy operating funds and loan payments which were deposited in the bank.

The report said the bank had been involved in corruption.

U.S. and Western European officials have long complained that widespread corruption has impeded the economic development of this country since the 1995 Dayton peace agreement.

A spokeswoman for the top international official in Bosnia, Wolfgang Petritsch, welcomed the arrest.

``We are glad to see that the judiciary and police are doing their job and fighting fraud and corruption in Bosnia,'' said the spokeswoman, Alexandra Stiglmayer. She added that Bosnia ``must have a reliable banking system to recover economically.''