>>57763227>Yes, it's a huge plotholeNo, it really isn't.
Think of it this way: This guy with considerable influence has just arrived to your town. He's made a huge show of himself, and has given you an interesting question to ponder. Suddenly, two kids that you've never even seen in your life say that two of his guys just kicked a Munna in the dreamyard.
Your initial reaction isn't going to be "oh, Ghetsis is evil!" It's most likely going to be "that's weird, and there's a very clear dissonance to what he just said. Maybe they're rogue, or you're mistaken?"
This, by the ways, is in a region where there are Pokemon that can disguise themselves as humans, and communicate. It's entirely possible someone wanted to besmirch the name of Ghetsis.
We, the player, work with meta knowledge, and get to witness to the heinous acts first hand. The in game characters do not have this same knowledge and for the most part do not even witness the crimes.