Jareth told the bald man to go and report the matter of the teleporting miasmic corruption because he already knew what the ministers would choose.
They will follow Jareth's words and won't agree to destroying the only entrance they have for the Abyss Altar.
Instead they will choose to hire mages and warriors that will be responsible for purifying the teleportation Altar from time to time.
This is one of the missions you can get in the game too.
If you don't go to the Abyss Altar Area illegally and choose to stay away from this completely optional area.
Then you can do this mission of helping the government cleanse and purify the miasmic corruption in the teleportation Altar from time to time.
This is a repeatedly occurring quick event type mission and you can do it every once in a while to earn generous awards.
