Federal Police Detain Suspects in 89 Million Birr Forged Bank Guarantee Scheme

Federal investigators have launched a wide-ranging probe into an alleged forged bank guarantee network that may have exposed several Ethiopian lenders to losses approaching 89 million birr, according to law enforcement officials.

The investigation centers on the suspected use of counterfeit performance and advance payment guarantees submitted to multiple banks, including Gedda Bank, Cooperative Bank of Oromia and the Commercial Bank of Ethiopia. Authorities say falsified signatures, stamps, and supporting documentation were allegedly used to bypass standard verification procedures.

Police have identified Getahun Meles Liyih, general manager of Goder Wyne Trading, as a key suspect in the case. He is accused of working with Abdisa Tolosa Debeli, a branch manager at Gedda Bank’s Agemsa branch, to facilitate the submission of forged guarantees.

Among the transactions under review are a 23.296 million birr guarantee linked to Wedera Multipurpose Farmers’ Cooperative Union and a 20 million birr instrument associated with Fenan Mohammed Bashir Paint Manufacturing. Investigators estimate these two cases alone represent more than 43 million birr in potential exposure.

A third suspect, Abebaw Mekonnen Aregu, is alleged to have played a coordinating role by connecting parties and enabling the transactions to proceed.

Authorities also disclosed that the principal suspect had previously been sought in connection with a separate 28 million birr fraud case involving the Cooperative Bank of Oromia. In another incident, he is accused of using falsified documentation to remove a court restriction on a property, resulting in an alleged 18 million birr loss to the Commercial Bank of Ethiopia.

Law enforcement officials indicated that forensic audits are ongoing to determine the full financial impact and assess whether internal control weaknesses contributed to the alleged scheme. The case is being treated as a serious financial crime with potential implications for compliance oversight and risk management practices within the banking sector.

 

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