DATE=8/23/1999 TYPE=CORRESPONDENT REPORT TITLE=SWISS SCANDAL (L-ONLY) NUMBER=2-253044 BYLINE=LISA SCHLEIN DATELINE=GENEVA CONTENT= VOICED AT: INTRO: Switzerland's main political parties are urging a government investigation into a widening scandal involving the army's secret service. Lisa Schlein in Geneva reports the affair involves alleged fraud of millions of dollars, the illegal sale of arms and links to organized crime. TEXT: Switzerland's main political parties are calling for a parliamentary inquiry to find the truth behind a scandal that has all the elements of a spy thriller. The country's Defense Minister, Adolf Ogi, says an investigation is already underway, examining possible links to organized crime and illegal arms trafficking. So far, the Chief of the Secret Service has been suspended and the man at the center of the scandal, Dino Bellasi, is behind bars. Mr. Bellasi, a former Defense Ministry Official who acted as senior accountant for military intelligence, was arrested more than a week ago. He is suspected of having used forged invoices to get an advance from Switzerland's central bank of nearly six million dollars. The money was supposed to have gone to pay for troop movements that did not take place. Switzerland's Attorney General is also looking into accusations that the country's intelligence service has been smuggling and selling arms to criminal organizations. The head of the intelligence service and various members within the defense ministry are accused of trying to create a secret army. A large secret cache of arms was discovered near the capital Bern. A Swiss newspaper alleges that Mr. Bellasi was in contact with former agents of the Israeli, American and German secret services. Meanwhile, Switzerland's Attorney General's Office says it is widening its probe and is investigating others possibly involved in the scandal or who may shed additional light on it. (Signed) NEB/LS/PCF/KL 23-Aug-1999 13:12 PM EDT (23-Aug-1999 1712 UTC) NNNN Source: Voice of America .