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The idea is Zuan is corrupt. If you have the money or the power you can get away with anything there. From lore we know that they are helping Twitch (who is crazy) just because he is strong. Also wasn't Graves being held in a secret illegal basement prison? No one seemed to care.
idk i'eve always been a fan of the chaotic Rapture (city from bioshock) feel Zuan had in lore.