NIB victim of 36mln birr fraud

Tuesday May 9, 2006

By Mikias Makonnen

NIB International Bank has been swindled out of 36 million Ethiopian birr by an individual named Asmelash (his second name is not known) sources told Capital.

The individual allegedly offered the bank many quintals of coffee as collateral to get a loan of 36 million birr. The collateral was found to be not equivalent with the amount of the money he borrowed. The individual, who is believed to be an Eritrean citizen, left the country immediately after receiving the money.

According to our sources, Asmelash was later arrested in Dubai, although the charges have not been made public. The board of the bank, however, has paid a visit to Dubai’s higher security officials to discuss the case. The top managements of the bank have held a series of meetings following the news of the case, the sources added.

Capital tried to reach officials at the bank for comment, but all attempts failed.

Nib Bank has enjoyed prosperous existence in its 7 years of service recording a net profit of 45.7 million birr in the last fiscal year. And it has already established correspondent banking relationships with major international banks in Europe, USA, Asia and Africa.

Nib International Bank S.C. was established on May 26th 1999 under license no. LBB/007/99, in accordance with the Commercial Code of Ethiopia, proclamation no. 84/1994 for Licensing and Supervision of Banking Business.

Nib commenced operations on 28th October 1999, providing commercial banking services to the business community and the population at large, helping spread and deepen banking habits among the population, introducing and popularizing modern banking practices in the country, maximizing operational results and enhancing shareholders’ benefits.

Source: Capital