This actually happens a lot in big organizations, even in the private sector.
You end up with an incompetent project manager, and all of the subject matter experts are saying that they are incompetent, but management doesn't want to hear it. So the project keeps going and the subject matter experts save the day from the shitty project, and as soon as that project manager has been fired because the project is over and paid their full bonus for doing such a great job, suddenly all the problems that the subject matter experts warned about slap everyone in the face. It's not like you can fire the project manager again, it's not like you can rescind their bonus, you're just stuck with a shitty project.
You end up with an incompetent project manager, and all of the subject matter experts are saying that they are incompetent, but management doesn't want to hear it. So the project keeps going and the subject matter experts save the day from the shitty project, and as soon as that project manager has been fired because the project is over and paid their full bonus for doing such a great job, suddenly all the problems that the subject matter experts warned about slap everyone in the face. It's not like you can fire the project manager again, it's not like you can rescind their bonus, you're just stuck with a shitty project.
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You can sue external contractors, but you typically can't sue your own employees for not doing their job very well.