By GEBREHIWOT HAILESLASE
Addis Ababa, Ethiopia — The Commercial Bank of Ethiopia (CBE) has categorically denied allegations that over 7.7 billion birr (approximately $56 million) was illicitly transferred from its internal accounts to individuals and businesses, describing the reports as “completely false.”
In an official statement issued on Tuesday, the state-owned financial giant responded to claims originally aired by Ethiopian Media Service (EMS) and echoed by other media outlets, including Borkena.
The reports alleged that billions of birr were funneled from CBE accounts to private entities, notably Kerchanshe Trading—an agricultural export company reportedly owned by Israel Degefu.
The story further implicated unnamed government officials and bank employees.
“No funds were stolen from our bank,” CBE asserted in its statement.
“What actually occurred was an attempted fraud, which was swiftly identified and stopped by our internal control systems before any money could be disbursed.”
According to the bank, its real-time monitoring mechanisms flagged suspicious activity within minutes, preventing the transaction from being finalized.
CBE stressed that the attempt was not the result of a systemic breach, but rather the action of a limited number of individuals acting independently in an effort to illicitly gain financially.
“The suspects acted independently,” the statement read. “Thanks to our robust safeguards, we prevented the transaction from being completed.”
Authorities have since arrested individuals in connection with the attempted fraud, and investigations are ongoing.
CBE noted that it is fully cooperating with law enforcement agencies and will release more information once the legal process concludes.
While denying any wrongdoing, CBE admitted that it did not initially disclose the attempted fraud until a day after EMS’s report surfaced.
The bank insisted it was acting in accordance with due legal process and had not withheld any information.
The reports by EMS, citing unnamed sources, claimed that up to 4 billion birr had been transferred to Kerchanshe Trading. EMS justified its anonymity policy on the basis of “security concerns.”
As of publication, Ethiopian police have not issued an official statement regarding the incident or confirmed the arrests.
This latest controversy comes at a time when the Commercial Bank of Ethiopia is navigating significant financial pressures, having recently received support from the International Monetary Fund (IMF).
The assistance was reportedly linked to Prime Minister Abiy Ahmed’s broader macroeconomic reform program, launched in July 2024, which included a major currency depreciation—more than doubling the exchange rate of the birr.
The CBE has also faced scrutiny in recent years for a series of high-profile financial mishaps.
In March 2024, the bank admitted that nearly 490,000 unauthorized transactions occurred within 24 hours due to a “systemic glitch,” resulting in the temporary loss of about 5 billion birr.
The bank later claimed to have recovered most of the lost funds.
Despite these incidents, CBE maintains that its internal systems are “modern and resilient” and reaffirmed its commitment to transparency and accountability.
“As one of the largest financial institutions in Ethiopia, we recognize we may be targeted by bad actors,” the bank stated. “However, the rapid detection and prevention of this attempt is proof that our systems are both modern and resilient.”
The CBE has pledged to keep the public informed as the investigation progresses.