The issue with this was that Kilriss Zesch was also the banker, so she was removed from the PvP servers by the code that removes bankers unless they are in specific flagged cities. So I placed a new character in Danak who is now the banker and Kilriss Zesch should now be back to speak to as of GU 42.
After Gu 42 I would suggest that anyone stuck on this deletes the quest and starts it again fresh. I have not heard of any other issues with this quest to date, and only this issue on the PvP servers.
LINK
(Kander) Re:Quest "Direect Reports!"
