Krunoslav Bonic has been wanted by Bosnian police for years over his alleged part in that country's 1992-95 war, but has lived in Canberra for up to a decade, Fairfax newspapers say.
The Hague's Yugoslavia war crimes tribunal has heard evidence the former Bosnian Croat fighter allegedly cut the ears off dead soldiers and helped round up, interrogate and beat Muslims during the Bosnian conflict.
However, the Attorney-General's Department says it only received an extradition request in March, with proceedings beginning in the ACT Magistrates Court last week.
Australia's failure to root out alleged war criminals showed it didn't care, war crimes investigator and author Mark Aarons said.
"It doesn't give a damn if we have become a safe haven for mass murderers and torturers," Mr Aarons told Fairfax on Wednesday.
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