Doesn't surprise me about the recruitment army guy "Captain".
I had a DFO in a neighbouring South Asian airline with no ATPL (go figure the CAA!) and a new F/O's position who called himself CAPTAIN and ran around with 4 shiny bars introducing himself as Captain ......... MFO / DFO (& bar?). Std in this part of the world I'm afraid - what a joke! They often have far more interest in titles, flash uniforms and image than competency and respect of sub-ordinates / colleagues.
As for the contract and their dishonest techniques - follows on from above. My advice - don't touch anything in South Asia unless its through a known agency or you have $ up front. Preferably with good accom provided (a known hotel chain). Dealing with local landlords or believeing employer promises about "expat" std accom is (in my experience) very risky.
Honesty is not such a strong value there... You have been warned!
