SGill,
I did call IHQ on this and talked to Kip Z about just this thing.
He told me that First The Chapter has to approve them. Then passed on to IHQ and given to the GHZ for approval.
But as I stated above, it is given for work done with and for the Chapter. Or in some cases of Local Members who left before it was Colonized.
I agree with what you are saying as if that was the case, My Dad should be initiated along with my Mother if she was still alive for what they went through and did for us when I started the Local.