By Michael Chebud, Addis Fortune

ADDIS ABABA — The National Bank of Ethiopia (NBE) has sacked Almaz Moges from her post as General Manager of the turbulent Nile Insurance.

Getahun Nana, Banking and Insurance Supervision Department head, wrote a letter to Nile on June 19, 2008, informing them that her deputy, Dawit G. Amanuel, would take over the post. It is alleged, however, that she refused to hand over the office to her successor. The central bank subsequently shut down the office on Thursday, June 26, 2008.

The letter came a week after the central bank declined to approve two of the seven newly elected members of the Board of Directors. Almaz had been advised by officials at the NBE that the insurance company needed better management. Currently, the company is in debt for more than 50 million Br following various business deals.

The newly appointed Dawit is a familiar face in the insurance industry, with 24 years of experience under his belt, 15 years of which have been in a managerial position. He has a first degree in Accounting from Addis Abeba University (AAU), and is a chartered insurer with the ACII, a British insurance institute. In addition, he has a Diploma in Law, and is currently attending classes at the Association of Chartered Certified Accountants (ACCA) to become a chartered accountant.

Before his appointment as the General Manager two weeks ago, he was Administration and Finance Head and Deputy General Manager of Nile. He joined the company in April this year. Dawit spent almost his entire professional life at the Ethiopian Insurance Corporation (EIC). In the years spent at the state-owned insurance company, he served as Deputy Managing Director for six years, and Reinsurance Department Manager for five years. Before his departure from the EIC in April, he had been one of the top-level managers since 2001.

His predecessor at Nile, Almaz, has served the company for over two years. The major reason for her dismissal is her alleged failure to end the seven-year old business dispute between Nile and Tana Transport Plc, Star Business Group and others, sources disclosed.

Nile had given a financial guarantee bond for a sum of 15 million Br when Tana Transport bought 100 IVECO trucks (380 E 37M model) from the Automotive Manufacturing Company of Ethiopia (AMCE). In addition, Nile Insurance issued other bonds for the Commercial Bank of Ethiopia (CBE) and Abyssinia Bank. Combined, these bonds allegedly placed the insurance corporation into debt of up to a total of 52 million Br. Of this amount, 35 million Br and 17 million Br is owed to Star Business Group and Temesgen Mehari, a returnee businessman from the United States, respectively. Star Business and Temesgen also have four million Br and six million Br shares, respectively at Nile Insurance.

Established 13 years ago, Nile has a capital of 40 million Br.

Attempts by Fortune to get Almaz Moges to comment on the dismissal were unsuccessful.