>I've never seen in my entire career things as absurd as someone working 7 other jobs while pretending to work for us.

I'm sure I don't understand. You were paying someone for 40 hours a week and getting ~5. Why was this not apparent to their management? Or, if it was, why was nothing done about it?

The problem that your organization pays someone for 8x the output they're getting is definitely a problem, but if your management's only solution to this problem is to force the entire workforce to commute to an office, I think the bigger problem that should be addressed is that your management sucks.