It's your problem, but the situation is not analogous.
If the boat has a hole in, we're both going to drown fairly soon if we don't work together.
If you act in the interests of the company, you take on significant personal risk that you'll be thrown over the side of a boat that may or may not make it to a figurative port - i.e. the company lasts long enough for you to get what you wanted out of the contract - for reporting that someone looked fishy around the engine room.
Don't get me wrong however: Loyalty is valuable. I just choose to assign it to people I respect and who care about me, rather than those who waves a cheque book at me and expect to own my soul when they rent my labour.
I hear you on owning the soul and dis-respectable people. I don't think we should let ourselves be abused. In the case of the original poster, if what he says is accurate (we don't know, we aren't there), he is being abused by a rouge boss who is also creating risk for the company. My opinion is that he should fight this and make others aware of what is going on and try to have it change. Or else leave on his own volition if it is systemic of the larger organization and there is little chance of winning. But don't be abused and don't let the organization that is paying him be abused.
