Following the dismissal of Aselefech Mulugeta,
former president of the Bank of Abyssinia, Tarekegn
Assefa and Emawayish Adissu, Corporate Planning and
Business Development and International Banking
Department managers, respectively, resigned.
Sources from the bank have disclosed that the
resignations of the two senior officials are related
to the dismissal of Asselefech. Officials, however,
"Tarekegn's resignation had been submitted a month
ago," the new Acting President of the bank told
Fortune. "Emawayish's resignation, however, occurred
after Aselefech was relieved from office."
Emawayish resigned because she was highly frustrated
with the stiff management system of the bank,
knowledgeable sources told Fortune.
"The management system lacks flexibility, a key
element in managing banking business," the source
After assuming office, the new Board of Directors of
the Bank of Abyssinia (BoA) sacked Aselefech in a
surprise move on January 27, 2009.
Aselefech has been managing the Bank since October
The board held an extraordinary meeting on January
26, 2009, at which the members unanimously decided
to remove Aselefech from the helm of the bank,
according to bank officials.
"Convinced of the need to change the management of
the bank, the board has decided unanimously to
relieve you from the post of the President, as of
January 27, 2009," reads a letter signed by
Minwuyelet Kassa, chairman of the Board, who
replaced Philippos W. Mariam. The letter is
addressed to Aselefech and is dated January 27,
On the same day, the chairman wrote another letter
to Chanyalew Yilma, vice president for
Administration and Finance, notifying him of his
appointment as acting president of the bank.
"Until the Board passes an alternate decision, you
have been assigned to the post of Acting President,"
states Chanyalew's appointment letter, a copy of
which has duly been submitted to the National Bank
of Ethiopia (NBE).
Aselefech joined the Bank of Abyssinia nine years
ago, and was in charge of the International Banking
Department. Later on she was promoted to the
vice-president level, responsible for Operation and
Strategic Planning. Prior to that, she had been
working for the Commercial Bank of Ethiopia (CBE)
ever since she graduated from the Addis Abeba
University in Accounting.
The board was elected at the bank's general assembly
meeting held on December 7, 2008, at Hilton Addis.
However, the NBE approved it on January 13, 2009.
"Upon its official inauguration, the board planned
to revise the structure of the bank and composition
of the top management," Minwuyelet told Fortune.
"The board assigned a new president to install a
Chanyalew has about 25 years of experience in the
banking industry. He worked at the CBE, where he
started as a junior clerk and rose through the
bank's ranks to become Assistant Vice President, a
post he held when he left the bank on February 10,
Chanyalew earned his master's in Corporate
Management and Finance from the University of
Sorbonne, Paris, in 2001.
He, joined BoA as vice president for Finance and
Administration on February 10, 2006. Since then, he
has been immersed in building capacity and
developing a new system in the bank.
"BoA has now developed a better system of
operation," the Acting President told Fortune, with
joy and sense of accomplishment evident on his face.
He is also working as the Chief Strategist to
improve the corporate governance, corporate work
culture and capacity of the bank. He hopes that the
success of the work in these areas will make BoA the
bank of the future, and allow him to leave a legacy.
Established in 1998 by 1,301 shareholders, the Bank
of Abyssinia has as of June 2008 an authorized
capital of 630 million Br and a paid up capital of
407.59 million Br. Its assets have over the years
increased to 4.53 billion Br, while its advances and
deposits were 2.82 billion Br and 3.48 billion Br,
respectively. Last year, the Bank however was forced
to keep 142.7 million Br for provisions, the
consequence of which was a 16.6 million Br profit.
This was in sharp contrast to other much younger
banks, which reaped five times or more profit.