This is a beautiful illustration of how the path to hell is paved with good sounding intentions (private edit of the moto I know).
- The State mandates something for the common good (or so they say)
- The execution is subcontracted to private entities
- The private entities find the loophole
- The private entities benefit and not the common good
- Rinse and repeat with the next common good
And then we wonder why the world is turning more and more for recucing the state power. It's not a lack of empathy, it's a realization of how the capture works.