For prominent people of the state sector, it is customary to join the private sector after the end of their tenure serving the cause of the public. Take for instance Tony Blair, the former British prime minister who recently stepped down from both roles as labour party and Britain’s leader, and has joined last week JP Morgan, Wall Street’s best known investment bank, as an advisor. It is not a new practice: His predecessor, John Major, and former United States (US) President George H. W. Bush, became advisors to a powerful private equity firm, Carlyle Group.

Close to home, the tradition is being emulated by few. Remember Philipos W. Mariam, state minister for the now defunct Ministry of Infrastructure? He finally joined the Bank of Abyssinia as chairman of the board of directors.

The latest is Moges Chemere, former president of the ailing state investment bank, Development Bank of Ethiopia (DBE), who has joined Yencomad, a construction firm owned by the family of Yemiru Nega, the latter being developer of Addis Abeba’s largest modern shopping mall, Dembel City Centre. Moges struck a deal with Yemiru two months ago and was hired as Chief Executive Officer (CEO) of the firm, while Yemiru elevated himself to the position of Chairman, an interesting development, gossip corridor bemused.

Prior to landing at a construction firm owned by such a controversial business figure, Moges spent a few months behind bars, after the Federal Ethics and Anticorruption Commission launched an investigation over an alleged misuse of loan guarantee (underwriting) DBE extended to a businessman who was advanced loans by Wegagen Bank. Following his release with no charge pressed against him, Moges was hired by a private company, Land and Sea Development Plc, as Chief Financial Officer (CFO).

 Speculations at the gossip corridor have it that Moges, who is also responsible for duties beyond managing the property, is to be paid more than what his predecessor had earned as a deputy to Yemiru.

His latest involvement with Yencomad has raised eyebrows at the gossip corridor for he is hired by a man who has a rocky relationship with the Bank where Moges served as the longest tenured president. In fact, it was during his reign at the helm of DBE Yemiru was granted a loan of 186 million Br, and managed to get, according to gossip, loan rescheduling on multiple occasions subsequently.

Yemiru’s contentious business relationship is all certain and beyond gossip. Although he has managed to waiver foreclosure after servicing the 25 million Br he owes the Bank in interest arrear; he has yet to hold the storm at bay. Under pressure from federal authorities, he has agreed to produce a repayment plan for the principal as early as February 2008 for the Bank’s management to come to terms with one of their largest, if not well publicised loan portfolios.

Never mind about what gossip sees as a payback deal for old favours, having someone as much an insider as Moges is a great asset for an embattled business mogul like Yemiru Nega, right?