...Where else is this going on today?
The welfare state comes to mind. Those who are able to show that they can't work are often very skilled at 'working' the system. Also, local government entities are very hard pressed to find workers who are skilled at writing grant proposals because they are in such demand. Indeed our local government was scrambling before the last election to have 'shovel ready' projects for the great govenment money giveaway! The local leaders had an anything goes attitude, as long as it brought federal dollars to this area.
You passed by it without seeing it. That sentence contains the key truth of the matter.
Why is there the profession of Grant Writer? Isn't that just a Defreezer by a different name?