Commercial Bank of Ethiopia Recovers Majority of Funds Lost Due to System Glitch
Written by Deborah Oyinloye on March 27, 2024
Ethiopia’s largest bank, the Commercial Bank of Ethiopia (CBE), has successfully recovered over 80% of the funds lost following a system glitch that allowed users to withdraw more money than their account balances.
CBE President, Abe Sano, announced on Tuesday that approximately $14 million was mistakenly withdrawn or transferred due to a system error. Contrary to initial reports of a $40 million loss, the bank clarified that the affected transactions ranged from as little as 9 cents to $5,350.
A statement from CBE revealed that around 15,000 customers have voluntarily returned the misappropriated funds. However, 567 individuals are yet to return the money, prompting the bank to publish their names and account details online to expedite the recovery process.
While the outstanding amount may not significantly impact the bank’s financial stability, Abe Sano emphasized the importance of recovering the remaining funds to uphold the bank’s reputation. He stated, “The total amount remaining is not significant for the bank, but if this money is not fully recouped, it sends the wrong message.”
The system glitch, which occurred during a routine system update and inspection, led to widespread disruptions in Ethiopia’s banking services. The banking system was temporarily shut down, preventing customers from accessing their funds.
The incident gained traction on social media platforms on March 16, with a significant portion of the withdrawn funds attributed to university students. Several universities have since issued public appeals urging their students to return the unlawfully acquired funds.
Ethiopia’s central bank confirmed that the issue was caused by an internal system error rather than a cyberattack. Established in 1963, the Commercial Bank of Ethiopia serves as the country’s premier financial institution, boasting a customer base of 40 million individuals.
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Author: Deborah Oyinloye
With an interest in media, Deborah aims to impart the lives of people positively.
