1.) priority is not just high, it is critical, communicating this is lost at each layer (executive, planning, execution, process control, quality control) 2.) leadership is lax, the chain of command doesn't designate a clear single responsible individual 3.) policy enforcement in this example actually increases the risk of an unsatisfactory outcome, by increasing the complexity of the solution vs. what is in production 4.) quality control is adversarial and ass backwards, code review is supposed to be a sanity check "does this code do what the developer thinks it does" aka. "can some other person understand it" 5.) test planning should not be the developer's responsibility, quite frankly if QA can't figure out if it is working or not you should fire your QA department. 6.) Ultimately, it is a total failure of policy and management as it requires the President of the company to micromanage the situation.
If you think any of this is fine, I'm sorry but your company is doomed to fail (unless it is already so big it is too big to fail).