Squarecrow
Please do not find this situation unbelievable, it is just scratching the surface. I too have worked extensively in the area, and the things I have uncovered I could write a book on. I am only guessing here but is the company a 'low cost' operator? There are many entrepreneurs in SE Asia who find it vogue to own a low cost airline, thinking they will become the next 'Stellios'. They run the airlines like they would run say a hotel. They don't understand or care about crew duty time, currency, mandatory safety checks etc. These airlines run at a 1-1.5% profit margin, that does not leave a lot of room for what non-aviation orientated management see as 'unnecessarys' .
I have discovered 747's with 100 emergency oxygen masks short for the pax, and those that were on the aircraft were not connected as they had the wrong connections fitted at the end!!! When i told the owner that in the event of a rapid decompression at 37000 feet it is likely there would be over 300 stiffs down the back, he just shrugged his shoulders
All i would say is that you and your friend have some soul searching to do. You are now part of the 'chain of events'. If you do nothing and in 3 months time an aircraft piles in with 200 people on board, and it was preventable, neither of you will sleep well for the rest of your lives. If you launch in to do something in the wrong manner, without discretion etc, it is likely your friend will never get a job in SE Asia again. If you need the tack i choose with the airline above please PM me.
Good Luck!