Isn't this standard in Europe? There exists a layer of well-connected and impenetrable managerial class, shielded by a glass ceiling. The entire company is BS, and they use some folks with clout and credentials to access grants and handouts (or whatever inscrutable financial reasons). They often sell products to each others' companies or big Euro vendors.
Even if this fits the spirit of corruption, I'm not sure it fits the spirit of it. They certainly aren't there to build a product or provide valuable expertise, but taxes and salaries are paid, people go to conferences, they might even build something, but its a giant LARP. Don't expect to get rewarded or recognized for solid engineering.
I'm sure if you worked for a mid-sized Euro firm, you know what I'm talking about.