It raises a lot of red flags—violations of the Lobbyists' Code, and I believe these people are lobbyists. The Lobbyists' Code does not allow you to lobby someone, which means communicate in respect of their decisions, when you have a relationship with them of friendship that causes the appearance of a conflict of interest.
Then, on the government side, the executive testifying earlier said that he expected all of his team to follow the Values and Ethics Code for the Public Sector. The problem is that it's just an expectation.
My father had an old saying. People do what you inspect, not what you expect, and there is no inspection. It's all an honour system, and honour systems don't work. They work for most people, who are honourable, but for whatever percentage it is who are not you need inspection and auditing systems. You need full disclosure of their values, their assets and liabilities, and their conflicts of interest before any decision-making process begins, with a watchdog who is auditing and inspecting regularly so everyone knows you have a high chance of getting caught.
Otherwise, as I said, the system's the scandal and you're going to get scandalous behaviour.