They basically took inept employees that were too dumb to give real work to do (but not dumb enough to successfully terminate) and put them into a "Security" unit that allowed salaries to funded by some special source. As far as I could tell, their job was to assign password-reset permissions to "key users" in the field and do some sort of audit function. One of my interns automated their jobs in about 2 weeks when they all retired. They spent most of their time filing discrimination complaints about each other.
The Director was brilliant about it, he'd nominate them for awards for exceeding their KPIs or meeting project milestones, or some other nonsense, which allowed him to expand the group and put them in a separate room.
In the Fortune 500 space, I saw a similar behavior, but for a different purpose... the company did stack-ranking with 5-10% annual layoffs, and the Director-level people would scheme and fight to collect the most inept people possible. When it came time for their unit to be culled, these people would basically serve as fodder for the layoff. It was bizarre to watch.