But Merkert was his spending personal time with Fring mentioning how he had him over for BBQs and such.
You can't fire a whole police department, that is silly and you're taking my comment too literally. Obviously only the head of the department (or whatever title Merkert held) would be fired.
Uhh... spending practically every weekend with a drug kingpin for a year and a half will not have serious blowback including losing his job?
Yeah, I highly doubt that.