Is there a way forward then? Anon has been commenting, it's always been like this and it always will. He has observed the "facts". Read this again.
I hope I have established that a key issue is to establish proper criteria for selection. The following of rules. Once this is established then the officials will no longer enjoy the taste of illicit power, of haram power. The power that exploit the fears of parents and players.
Once this is done, you may also find that players proper recognition will not be a problem anymore and maybe the officials that have overstayed their usefulness will leave the scene. They only stay because of this illicit power. They may retire gracefully when they find that there is no more "reward" from spending all their time trying to stay in power. With them gone maybe someone who actually can do something for chess may come in.
And without this drama, the players may actually learn how to play the game of chess instead of trying to get their results recognised by "officialdom".
I implied at the top, in the link, that this can be achieved by a change of perspective. Of seeing the cup half full. When this is done we increase our chances of getting that GM. More over the weekend.