WebSprix CEO Detained Over Alleged 51.28 Million Birr Loss

August 17, 2026
By Mintesinot Nigussie

Dawit Birhanu, chief executive of WebSprix IT Solution, was detained by police in Addis Ababa over allegations that he caused 51.28 million birr in losses to the company, according to an external audit report cited by Zehabesha.

Zehabesha reported that Birhanu was taken from his office to the Bole Sub-City Police Department for questioning and was released on police bail later that evening without being brought before a court, citing police sources.

The allegations stem from an external audit of the company’s finances during Birhanu’s tenure as chief executive. According to the audit findings reported by Zehabesha, several payments and transactions were made without approval from the company’s board of directors or general shareholders’ meeting.

The largest alleged loss, 29.58 million birr, relates to compensation paid to Birhanu from company funds, according to the audit report cited by Zehabesha.

The report also alleges that Birhanu increased his monthly salary and benefits from 266,500 birr to 2.894 million birr without the required approval. The audit calculated that the arrangement resulted in 15.77 million birr in payments over six months before the company’s board suspended it.

A further 11.7 million birr was allegedly taken from company funds as loans to Birhanu or a third party without the necessary authority, according to the audit report. Six million birr was reportedly repaid, leaving 5.7 million birr outstanding.

The audit also raised questions over payments to Birhanu’s wife, Tigist Damte, who was employed as the company’s chief marketing officer and received 468,000 birr a month, according to Zehabesha’s report.

The company’s board subsequently terminated Damte’s employment. Birhanu is alleged to have later authorised a payment of 234,000 birr to her despite the board’s decision, according to the audit report.

The reported audit findings total 51.28 million birr in alleged losses to WebSprix IT Solution.

The police investigation is ongoing. The allegations have not been tested in court, and it was not immediately clear whether Birhanu had legal representation or whether prosecutors had filed formal charges against him.

Zehabesha also reported that Birhanu had previously faced allegations involving tax evasion, failure to pay additional tax, smuggling and money laundering, and had been detained for several months before being released.

The audit findings and police investigation do not, by themselves, establish criminal liability. Any determination of wrongdoing would depend on further investigation and judicial proceedings.

Source: FSX Business News