As someone who works in the manufacturing of steel components for marine use, the most surprising thing for me is that there's no mention of any quality-system auditor being involved. Did the auditor miss this? Is there no auditor? If so, why was their customer (the prime contractor) willing to tolerate this? Why were the company's insurers willing to tolerate it?
No doubt the metallurgist was grossly irresponsible here, but I do wonder whether they might be making a song and dance about this one aspect to distract from a whole chain of careless practice.