Ethiopian Banking Industry Suffers Over 1.8 Billion Birr in Fraud Losses since 2017: Ministry of Justice Investigates

May 30, 2022

Fraudulent Activities Drain Ethiopian Banking Industry of 1.8 Billion Birr

The Ethiopian banking industry has suffered significant financial losses due to fraudulent activities since 2017. As per a report released by the Ministry of Justice, the sector incurred a loss totaling 1.8 billion birr during this period [1]. An attempt was made to steal an astounding 370 billion birr from banks over the same time frame.

Ministry of Justice and Stakeholders Discuss Effective Measures to Prevent Financial Fraud

In response to these alarming findings, the Ministry of Justice held consultations with various stakeholders to discuss preventive measures against financial fraud in the Ethiopian banking sector. The list of attendees included the Governor of Ethiopian National Bank, Yinager Dessie (PhD), the presidents of several banks, Ethio Telecom officials, and other concerned parties [2].

Commercial Bank of Ethiopia Bears the Brunt of the Losses

Approximately half of the total fraud losses, amounting to 900 million birr, were recorded by the Commercial Bank of Ethiopia [1]. Suspicions have also arisen involving certain employees from Ethio Telecom in these fraudulent activities [2].

Investigations Underway and Call for Public Vigilance

The Ethiopian National Bank and other relevant authorities are currently conducting further investigations into these cases to bring the perpetrators to justice and prevent future occurrences [2]. The Ministry of Justice has issued a statement encouraging the public to remain vigilant and report any suspicious transactions or activities related to financial fraud [3].

A Crucial Step Forward in Addressing Ethiopia’s Financial Fraud Crisis

The consultation meeting marked a critical step forward in addressing the financial fraud crisis in Ethiopia [2]. Stakeholders agreed that greater cooperation and collaboration between the government, banks, and other related organizations will be necessary to effectively tackle the issue and protect the Ethiopian banking industry [2].

Ethiopia: Modernizing the Financial Sector and Attracting Foreign Investment

These developments come at a time when Ethiopia is working to modernize its financial sector and attract more foreign investment [3]. The successful resolution of the ongoing fraud cases and the implementation of robust anti-fraud measures will be crucial in strengthening investor confidence and fostering a stable economic environment in the country [3].

References:

[1] Ministry of Justice, “Press Release on the Consultative Meeting Held on May 27, 2022,” Ethiopian Ministry of Justice (May 30, 2022). [2] The Reporter, “Banking Industry Loses 1.8bn Birr to Fraud in Five Years,” The Reporter Online (May 30, 2022). [3] Ethio Star, “Fraud: 1.8 Billion Birr Gone from Ethiopian Banks in 5 Years,” Ethio Star (May 30, 2022).