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They were also cleared of unlawfully postponing detainees’ release.
Prosecutor Ozrenka Neskovic called for the verdict to be quashed and a new trial held.
The defence meanwhile called for the appeal to be rejected and the acquittal verdict upheld.
The indictment alleges that the crimes were committed while Saran was the chief of the police’s Public Security Station in Bosanska Krupa, Sabic was commander of the police department in Jasenica and Kadic was a policeman.
Kadic’s lawyer Zlatan Nanic argued the first-instance chamber’s decision was correct, adding that the majority of prosecution witnesses failed to mention his client.
“The prosecution of Bosnia and Herzegovina has not proved that my client committed the crime with which he is charged. I propose that the appeal be rejected and the first-instance verdict confirmed,” Nanic said.
The court’s appeals chamber will deliver its decision at a later stage.