Commercial Bank of Ethiopia Recovers $11 Million After System Glitch
ADDIS ABABA, March 27 (Reuters) – The state-owned Commercial Bank of Ethiopia has disclosed that it has recovered over three-quarters of the $14 million it lost due to a software glitch earlier this month, which enabled customers to withdraw more funds than they had in their accounts.
According to Abie Sano, the president of the bank, approximately 78% of the 801 million birr withdrawn from cash machines or transferred during the night of March 15 has been returned, amounting to 622.9 million birr ($11 million). However, there are still more than 500 individuals who have yet to return the remaining balance.
Abie Sano has pointed out that the bank has taken measures to address the issue by publishing the names of those who still owe money. Previously, he attributed the “theft” to university students, alleging that they had spread information about the glitch through social media channels.
The software glitch occurred during a system update, as confirmed by Ethiopia’s central bank earlier this month. However, the central bank assured that there was no risk to customers or the overall financial system despite the incident.
The Commercial Bank of Ethiopia has been actively working to rectify the situation and recover the lost funds. Abie Sano’s disclosure of the progress made in recovering the funds indicates a significant step towards resolving the issue and mitigating the financial impact on the bank.
The decision to publish the names of individuals who have not yet returned the balance underscores the bank’s commitment to holding those responsible for the unauthorized withdrawals accountable. By taking such measures, the bank aims to deter future incidents of this nature and maintain the integrity of its financial systems.
While the software glitch caused temporary disruption and financial losses, the swift actions taken by the Commercial Bank of Ethiopia demonstrate its resilience and ability to address challenges effectively. Moving forward, it is essential for the bank to implement additional safeguards to prevent similar incidents from occurring in the future and ensure the security of its customers’ funds.
