Commercial Bank of Ethiopia Recovers $10M Following System Glitch

The Commercial Bank of Ethiopia (CBE) has made significant strides in recovering funds lost due to a recent system glitch, reclaiming nearly three-quarters of the $14 million initially reported missing. Abe Sano, the bank’s president, announced that approximately $10 million has been successfully retrieved, marking a substantial achievement in rectifying the aftermath of the incident.

Following the emergence of the glitch on March 16, which allowed customers to withdraw more funds than available in their accounts, news quickly spread across university campuses, triggering a surge in withdrawals. Despite initial reports suggesting a loss of over $40 million, subsequent investigations clarified that the actual amount was closer to $14 million.

In response to the situation, CBE swiftly mobilised efforts to mitigate the impact, urging customers, particularly university students, to return any excess funds withdrawn. Sano stressed the bank’s commitment to holding individuals accountable for their actions, highlighting the traceability of digital transactions and the legal repercussions awaiting those who fail to comply.

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Despite encountering challenges in locating funds transferred to external accounts, CBE has demonstrated resilience in its recovery efforts, leveraging its extensive network and resources to trace and recoup lost assets. The bank’s proactive measures underscore its unwavering dedication to safeguarding the interests of its customers and preserving financial integrity.

While the exact cause of the system glitch remains undisclosed, authorities have ruled out the possibility of a cyberattack, attributing the incident to a “routine system update and inspection.” Efforts to enhance online banking services inadvertently led to the disruption, prompting a thorough review of internal processes to prevent future occurrences.

In a bid to foster transparency and accountability, CBE has initiated the publication of names and account details of individuals who have yet to return misappropriated funds, signalling a concerted effort to ensure full restitution. The bank’s unwavering commitment to rectifying the situation reflects its steadfast adherence to ethical standards and customer-centric values.

As CBE continues its recovery efforts and implements stringent measures to fortify its systems, stakeholders remain cautiously optimistic about the bank’s ability to emerge stronger from this ordeal. With a legacy spanning over eight decades and a vast customer base exceeding 38 million, CBE remains a cornerstone of Ethiopia’s financial landscape, poised to navigate challenges and uphold its mandate of fostering economic prosperity and financial stability.