That's how mafias work though. The mafia don has to keep his underlings paranoid and distrustful of one another. Otherwise they might conspire to overthrow him. It's a never-ending game of deceit, gaslighting, capricious violence, and palace intrigue.
It's also why these organizations are so dysfunctional. All of these machinations stand in direct contrast to the principles of effective management. Transparency, alignment of incentives, pooling of resources, cross-training expertise, and clear communication are all impossible to achieve in that kind of environment.
The difference between Tony Soprano and Jeff Bezos is that if you stab Tony Soprano in the back, you have a pretty good shot at becoming Tony Soprano. Same story holds true for authoritarian regimes. In democracies, the mandate to rule comes from popular approval. Simply conspiring to depose the ruler is not a viable path to power. Yet in Iran, China or Russia there's nothing to stop this besides fear and paranoia in the regime.
In a healthy org, it'd be nuts to have two divisions working at cross-purposes against each other. Yet in mafias, we see this kind of behavior all the time. For example, Hitler was notorious for giving different generals contradictory orders. Clearly it has some adaptive utility within that context.