Strange official response to the case of the police recruit cheats

You could imagine putting it to a job applicant as a killer scenario question designed to explore the judgment, analytical competence, economic awareness, decision-making capacity and ethical core of the applicant. All in one question. That can’t be bad.
That one question would be: “You have become aware that 50 trainee police officers have cheated in the examination that marks the end of their course. They have cheated in collusion. You are the chief constable of the force. What do you do?”