Ethiopian bank recovered 78% of funds caught in system glitch

By Sadik Kedir Abdu

ADDIS ABABA, Ethiopia (AA) - The state-owned Commercial Bank of Ethiopia has recovered 78% of its funds affected by a recent system glitch, the bank’s president told reporters on Tuesday.

The March 16 glitch involved 25,761 customers in unauthorized transactions, putting 801.4 million Ethiopian birr (around $14 million) at risk of theft.

Efforts by the bank have resulted in the retrieval of 662.9 million birr (about $12 million) of the total amount at risk.

The bank is actively pursuing the remaining 178 million birr (around $3 million), with measures in place to freeze these funds held in other banks, according to the president.

Initial recovery operations saw 44.6 million birr (nearly $79,000) reclaimed from 10,727 customers with sufficient funds, followed by 205.8 million birr (around $7 million) partially recovered from 15,008 customers with insufficient balances.

Nearly 9,300 voluntarily reimbursed the full amount and 5,160 returned partial sums. However, 567 clients have yet to return the funds, prompting the bank to consider legal action, the president told reporters.

Investigations into the system glitch are ongoing, with preliminary findings attributing the issue to transaction reversals caused by a recent system upgrade.

Established in 1942, the Commercial Bank of Ethiopia has grown into one of East Africa's largest banks, with over 20 million customers and total assets of around $23 billion, according to Statista.