There is no concept corresponding to the "moderator" of a category. We have volunteer editors -- some listed, some not listed. All who have privileges in the category have equal rights to edit there; all have the ability to correct each others' errors.
We try to encourage editors to respect each others' decisions and each others' various skills -- an editall knows a great deal about how a directory should be organized, but a specialist category editor may know a great deal about the topic itself. We try to handle differences through discussions aiming for consensus: if the law must be laid down (and it very seldom must be), then it would be laid down by Project Administrators (that is, people responsible for the whole project), not by the listed category editor.
You may have understood all this already, and just used the word "moderator" loosely ... If so, not to worry, I'll just hope someone who didn't, will read this. It is a common misunderstanding -- there's a very common paranoia that One Single Malevolent Editor/Competitor is preventing any possible review of a site. But that simply cannot happen -- for one thing, hundreds of people can potentially review that site; for another, IF that MEC is seen to be removing listable but competitive sites, he's appointed "Former Editor." And as long as a site is "waiting review", it hasn't been affected by the MEC.
on your questions.