That happened to me at the local council.
One of my staff had missed a major problem even though I had specifically addressed him about it and received assurances that all was OK.
He revealed the issue at a commitment meeting, leaving us no plan B.
As I was the manager, I took the responsibility, even though he had not revealed the problem as soon as he found out he had been "misled" by the salesman.
Our "new" management team were complete idiots compared to the recently retired team, who knew how I worked, so they took everything at face value.
I was elbowed out in a restructure and the worker who made the costly mistake was given my responsibilities, though not my role.
Apparently the place was a shambles for many years after!