Really puts the buck on the CAD. They better pray that HK Airlines does not have an accident, otherwise they are opening themselves up for a major lawsuit from the flying public who have put their trust on their oversight.
They basically have vouched that HK Airlines is safe and they found no problem in their "investigation". Yet, after sitting in on this management checkride, they found the pilot not up to spec.
We all know the CAD lack at their job, but they are usually pretty aggressive at going out of their way to prevent anything being pinned on them. That is why I'm surprised that they are willing to look away and not even accept the evidence provided by this individual.