The one point raised was having an independent consultant come in, " . . . review, evaluate, correct as necessary & maybe even seal the plans . . ." This is a good option until it comes to sealing the plans. An outside consultant could write a report that the plans as submitted have been reviewed, checked and even corrected in a fashion, and stamp his report; but he couldn't, in my view, ever consider signing off on the plans - for they were done under his direction. Interestingly, if he were to review the plans, wouldn't he have to write the engineer and advise him that he was doing so? If so, to whom would the review engineer write?
I agree with the main consensus that this is a toughie from the purely ethical point of view but probably could have been handled somewhat more cautiously at the very beginning of the "administrator's" appointment where the administrator could have been 'educated' a bit. No question it is the "old boy's network" at play.