With reference to your subject, I would like to mention that from my point of view you have done your duty by escalating unethical happenings to the employer. Now the boll is in their court so you need not to worry about happenings.
Also it is clear that after knowing about this, your employer is not ready to take any action means he is not interested due to your unit is in a winding down face (so nobody is much care about that) as stated by you.
Hence, the better option is to search another Job and start preparation to break interviews as that is the only good you can do or utilize your time to add some values to self.
Same situation here but scenario bit different as in Healhcare unit...infact couple of trustees are politically affiliated and even one of them is a standing member in local municipal corporation and with their references with have bunch of employees disturbing the flow of day to day activities, cant take action, cant say anything infact we stand in the firing line.
Such kind of unethical practices causes lot mental stress, emotional breakdown, loss of confidence and depression.But thanks to my family and couple of colleagues who gave me support in this nonsensical situation and as said by other colleagues awaiting for right opportunity to move out and till then staying diplomatic and mostly mum.
It is difficult to tackle things when it goes out of our range. We must project the issue to our superior (to whom we are reporting) with all facts and figures. You have done your duty in projecting the issues. If the employer/Head is not taking action, you need not bother. But one thing you must know - you should keep everything in writing to your boss in a confidential note and also maintain a diary. If tomorrow anybody questions, you can show the work done by you so that you are not blamed at a later date. There are lot of avenues for HR if you haunt properly. I advise it is better to leave the company and one cannot carryout job peacefully with the prevailing circumstances.
Best of Luck!!!