June 20, 2024

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Geez Bank

Dispute Arises Among Geez Bank Founding Members

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Geez Bank is a private commercial bank under formation in Ethiopia. War in northern Ethiopia disrupted share sales by the bank. Geez Bank secured a permit from the central bank allowing it to continue its bid to raise equity from the public. It intended to raise half a billion birr in paid-up capital.

Though the bank resumed selling shares but its establishment is in jeopardy as a dispute has arisen among its founding members. Geez Bank organizing committee informed yesterday that 3 organizing members, who allegedly took 9 million birr for the operation of the Bank of Gaza, had been suspended.

On the other hand, three suspended members took control of the bank’s office located in Mekele city of Tigray and said that they will provide an explanation regarding the matter soon.

The Chairman of the Geez Bank Organizing Committee and the coordinator of the Addis Ababa Geez Bank office, Thomas. Hailu yesterday said that, during the war in the northern part of Ethiopia, three members of the bank’s organizing committee spent three million birr each illegally. The three individuals kept the money in their hands for 27 months. They were told to pay back the money they had spent, and even though they returned 9 million, efforts were being made to make them pay the remaining interest. He added that it was verified by an external auditor that the individuals took the money. Mr. Thomas said they have reported the issue to the regulator i.e. the National Bank.

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