It's hard-wired into Putin's legacy, whatever Medvedev says. The Moscow Times:
Is there anything new here that differs from the system Medvedev criticized for its inherent incompetence, nepotism and corruption? The fundamental problem is that there is no place for a truly transparent and merit-based selection personnel recruiting process in Putin's political system -- a system Medvedev actively helped construct. Thus, Medvedev's presidential reserve will differ little, if at all, from the cadres he has criticized.
The bureaucratic elite rely on a caste system. Every bureaucrat's job -- and, more important, the extra "unofficial income" earned on the side that far exceeds official salaries -- is dependent on the goodwill of his boss. These perquisites are bestowed on subordinates based on a strict code of loyalty to their bosses.