and in this particular case I agree that this system can be abused. I was looking at it in more general terms regarding the NOC.

I don't think the NOC benefits the country at large, but rather the individual who has trouble keeping their employees (usually through their own fault). But in a country that it essentially a dictator (albeit a beneficent one), things are weighed out as to how to best keep the citizens happy so that one can retain their position.