Yes, internal candidate, but external, too. I have seen it at least 4 times. In the case of my company the people were were from India, China or Italy. One took roughly 6 months to come up to speed, so forget about the "best and brightest" of other lands.
At one large company an IT person with a laundry list of requirements was requested by the legal department. I called the supposed requester and asked what on earth the legal department would want with a software engineer with such a long, detailed list of requirements, or any IT person for that matter, no matter what the requirements. He told me that he just does what the HR department tells him to do. Wow. He made no attempt to hide what was going on. Good for him. The guy who eventually filled the slot was from India and had already been in the company for two months. The requirements were tailored for him. No one else, foreign or domestic, could possibly fill such a set of requirements.