Ethiopian Police File Charges in 1B Birr Labor Ministry Fraud Case
Ethiopian authorities have charged 13 individuals, including former ministry officials, for a 1 billion Birr fraud scheme involving the illegal issuance of professional certifications and visas. The investigation uncovered a network that bypassed technical systems and laundered money through cryptocurrency and luxury real estate.
Why it matters
This case highlights significant vulnerabilities in government digital infrastructure and the growing use of cryptocurrency in large-scale public sector corruption.
(Nairobi, Kenya) — The Ethiopian Federal Police have finalized an anti-corruption investigation into a 1 billion Birr fraud scheme involving the Ethiopian Labor Market Information System (ELMIS) project under the Ministry of Labor and Skills, transferring the case file to the Ministry of Justice for prosecution.
Police officials confirmed that primary suspect and former ELMIS project office manager Birhanu Aleka Asgedom, alongside 12 co-defendants—including ministry employees, labor recruitment agency owners, and external accomplices—faces formal charges following an investigation initiated in July 2025. Investigators revealed that the suspects bypassed standard technical verification procedures to deploy an unverified system, issuing fraudulent Certificates of Competency (COC) to 81,236 uncertified individuals. Suspects also granted unauthorized system administrator access to three external individuals to facilitate the illicit issuance of professional certifications.
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