Awash International Bank (AIB) has appointed one of its former vice presidents for international banking, Mitiku Abeshu, as a special advisor to AIB's president.

Abeshu is currently under investigation for his alleged role in letter of credit (L/C) misdemeanours at the bank.

L/C misdemeanours

According to the Ethiopian business weekly, the Addis Fortune, the bank sacked 10 of its employees who were accused of receiving 10 per cent of the foreign currency that AIB made available to customers through L/Cs at the bank.

Ethiopia's first private commercial bank also sent Abeshu on forced leave during the investigation.

Suspension

In April 2010, towards the end of the banker's forced leave, it emerged that the National Bank of Ethiopia (NBE) had also suspended Abeshu.

He was then appointed as the president of AIB's special advisor, a position that the bank says falls outside NBE's regulatory scope.

Investigations continue

The former vice president for international banking no longer holds an executive position at AIB.

Investigations into the L/C misdemeanours are continuing.

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