Is quality to be measured by how few get first class?

Our "modernisation" of examination system is clearly an example of 'a camel is a horse designed by a committee'. It upsets me to read such news because there is an implicit bias against internal examinations. Some extracts:

• a professor who did not wish to be named even alleged that marks were being sold in some colleges
• there is a 99 per cent chance of manipulation in evaluation of internals
• many teachers hate the new system as it involves considerable extra work such as preparing question papers for internal tests, assignments, projects and the like. Many of them claim that such elaborate work leaves them with little time to conduct classes.
  
  (Emphasis mine - I find it hard to believe that anyone who has taught for even short period can believe that classroom teaching is an effective tool for learning by students. An example of what we could be doing: Eric Mazur's view on how to make students learn.)

At issue is not the internal evaluation. However, you cannot have part central and part local with no regard for any normalisation. It is cleaner to let the exam be entirely internal and each degree should specify the college from which a student graduated and his/her percentile rank within the college.