You're violating several code sections, and defeating the purposes of grounding as well. I reccomend the engineer read Soares book on grounding, as a start.
No matter what you do, you need that green wire going back to the service. The purpose of this wire is to allow fault currents to be large enough to trip the breakers.
A ground rod is another matter. That is there for lightning protection. While the rod can be argued to "not accomplish anything," it won't hurt either.
Static will be primarily drained through the green wire, back to the service.
Likewise, the ground rod needs to be electrically connected to the green wire. All grounds at the same potential... AND the whit wires kept separate fron the grounds, until you get back to the service.
In fairness to the engineer, Section 250 has more contradictions, confusing terminology, and twists to it than the rest of the code combined! Much was done in 2005 to address this, and more will be seen in the 2008 code.
