"Keep the money flowing"

Exactly. 

When  faced with a messy and potentially scandalous situation that could damage reputations and cost $$$, leaders will always be tempted to take the path of least resistance and "kill the messenger", sweep the problem under the rug, and preserve a problem-free public image. This is how groups operate,  and it happens all the time. The deeper these threatening "family secrets" go,  the more intense will be the denials, defensiveness and retaliation.

The defensive statements of Hawaii Behavioral Health officials ("DOE would never allow that to happen", "we would never hire someone if there was conflict of interest", "we would never allow abuse, ever.") suggest a closed mindset. 

Many of these contractors are run by folks who were in the right place at the right time, with no experience supervising scores of employees, some who are family and friends, and totally dependent on keeping the state contract. Exposing internal misconduct terrifies them.