I don't get it. Are they saying people fail to practice the meritocracy that they preach, but select people by their genitals, or are they saying meritocracy is

I don't get it. Are they saying people fail to practice the meritocracy that they preach, but select people by their genitals, or are they saying meritocracy is the problem and selecting by genitals rather than skill is what they actually want?