Regulators have rejected Global Bank SC’s nominee for acting president amid an investigation into financial irregularities at the bank.
Last month, Global Bank’s board submitted its nomination of Sahlemichael Mekonen as acting president to the National Bank of Ethiopia (NBE) following the suspension of former president Tesfaye Boru (PhD) in the wake of an investigation into hundreds of millions of Birr in irregular withdrawals tied to a a time deposit account.
However, the central bank, under Governor Eyob Tekalign (PhD), has rejected Sahlemichael’s nomination on the grounds that the candidate “does not fulfill requirements stipulated under NBE laws.”
A letter addressed to the Global Bank board from Gemechis Dugasa, head of licensing at the NBE, directs it to nominate another candidate to the position.
From The Reporter Magazine
According to regulators, Sahlemichael does not meet criteria which require a bank president to have at least 12 years of experience in the industry, including at least five as a senior executive officer. The NBE also compels presidents to hold at least a graduate degree from an accredited higher learning institution.
According to the Global Bank website as of Friday, Sahlemichael is acting president.
The website states Sahlemichael has over 21 years of comprehensive banking experience across a slew of commercial banks, including the state-owned Commercial Bank of Ethiopia (CBE), Addis International Bank, and Global Bank.
From The Reporter Magazine
His most recent post was as chief corporate banking office at Global Bank. Sahlemichael also holds a graduate degree in accounting and finance.
Nonetheless, regulators have seen fit to reject his nomination as acting president.
Last month, Global Bank’s long-time president Tesfaye Boru was suspended, along with a large number of senior managers and executives, in relation to an investigation into irregular deposit and liquidity practices.
Tesfaye had delegated the Chief Corporate Banking Officer, Sahlemichael, to run the bank in his stead while he was abroad. Board chairman Yoseph Getachew later approved Sahlemichael’s nomination as acting president following Tesfaye’s suspension.
Global Bank generated income of over 5.5 billion Birr and a gross profit of 1.17 billion Birr in 2024/25 (up 33 percent year-on-year), placing it among the country’s smallest commercial banks. Profit after tax clocked in at 756 million Birr, up from 486 million the previous year.
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