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AU thwarts $6 Million fraud attempt targeting Ethiopian bank accounts

The Commercial Bank of Ethiopia. (Reuters)

By Mwangi Maina | 01 May 2024

These falsified documents indicated the funds were intended for construction and water drilling projects.

The African Union disclosed on Tuesday that an attempt to defraud the pan-continental organization of over $6 million from accounts held at Ethiopia’s primary bank had been thwarted.

The AU revealed that an individual, not associated with the organisation, attempted to withdraw the funds from its accounts at the Commercial Bank of Ethiopia (CBE) using forged payment orders.

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These falsified documents indicated the funds were intended for construction and water drilling projects.

“We commend the vigilance and swift action of the CBE staff and our finance department who successfully thwarted the fraudulent attempt resulting in no funds being withdrawn, averting a potential loss and ensuring that the integrity of our financial controls and management remain intact,” the AU said in a statement

The incident occurred at a Commercial Bank of Ethiopia (CBE) branch situated within the African Union’s headquarters in Addis Ababa, Ethiopia on April 15, the organisation confirmed.

Ethiopian security authorities were promptly notified, and immediate action was taken to identify and apprehend the individual(s) involved, in accordance with investigative protocols.

Although the attempted fraud was deemed concerning, the AU stated that it served as a catalyst for a comprehensive review of its security protocols, aiming to address potential vulnerabilities.

“We are working closely with the Commercial Bank of Ethiopia to reinforce safeguards and implement enhanced protocols to ensure that fraudulent attempts to compromise the finances of the African Union are prevented.”

In March, the CBE said it suffered a technical glitch that saw several thousand customers make fraudulent withdrawals to the tune of millions of dollars.

The bank said about $19.5 million was taken while some media reports put the losses as high as $100 million.

Last week, Addis Standard reported that in mid-April, authorities in Addis Ababa detained a senior clergyman from the Ethiopian Orthodox Tewahedo Church (EOTC) on suspicion of attempting to transfer over US$6 million from the foreign account of the African Union (AU) held at the Commercial Bank of Ethiopia (CBE) within the AU headquarters.

The suspect, identified as Clergyman Belay Mekonnen, who serves as the deputy general manager at the EOTC Patriarchate, was brought to the Federal First Instance Court in Addis Ababa for a second preliminary hearing on April 24.