Just as Iron Granny said, Balba's matter was never worth the concern. When Angor reported the matter to Sunders, the gentleman simply told him to "deal with it on his own, as he saw fit".
In fact, there were many "guests" who were currently residing at Phantom Island, such as Nano the Fibber, and yet Sunders never cared. Since Iron Granny claimed that Balba was very unlikely to be a spy from another plane, there was no reason for Sunders to worry about him.
Similarly, Flora didn't seem interested in Angor's choice either. Instead, she was glad that she got rid of the unwanted burden AND she received another promise from Angor. Double gain!
Without any hesitation, Flora allowed Angor to take Balba away, on the condition that Angor had to give her an alchemy illusion item like the one he gave to Greya. Apparently, Flora would like to search for an opportunity in Angor's illusion so that she could become a truth-finder wizard as well.