Ethiopia’s largest commercial bank, the Commercial Bank of Ethiopia (CBE), is facing a significant challenge as it seeks to recover substantial sums of money withdrawn by customers due to a “systems glitch.”
Customers discovered on Saturday morning that they could withdraw more cash than their account balances permitted, leading to withdrawals totaling over $40 million or £31 million, as reported by local media. It took several hours for the bank to halt transactions and freeze accounts in response to the issue.
Bank President Abe Sano revealed that a substantial portion of the withdrawn funds originated from CBE accounts held by students.
News of the glitch rapidly spread among university students through messaging apps and phone calls, prompting long queues at campus ATMs. At Jimma University Institute of Technology, withdrawals continued until police intervention.
Similar reports emerged from Dilla University, where numerous students withdrew funds during the early hours of the morning.
The Central Bank of Ethiopia acknowledged the incident, attributing it to a “glitch” during routine maintenance and inspection activities. However, its statement focused on the subsequent service interruption rather than the unauthorised withdrawals.
President Abe Sano clarified that the bank did not fall victim to a cyberattack and assured customers of the security of their personal accounts.
While the exact amount withdrawn during the incident remains undisclosed, Sano emphasised that the losses were negligible compared to the bank’s overall assets.
CBE urged customers to return any mistakenly withdrawn funds, promising no criminal charges for those who comply. Efforts to recover the funds are ongoing, with mixed success reported across universities.
Despite challenges, bank officials are actively collecting returned funds, aiming to mitigate the financial impact of the glitch.