Are you sure the model you're talking about is not the Secret Service Men? Or are you referring to the model that has a small russian flag on the uniform? The russian flag guy (I don't think we have a picture of him) is a disused model (if I remember right), so he must be some kind of Cut game content from Just Cause 2.
I would also have preferred him to survive, but I wouldn't want to have to worry about possibly leaving some stupid AI behind into battle while I want to grapple some place. It would have been better if the other guy would be more of a spy and try to infiltrate the government to help divert more resources to waste and to occasionally help out when needed in missions.
That character model is elite Panauan secret service
They just reused it to make it look Black Hand
1. How do you know it's not the Black Hand model that was reused to make it an Panauan secret service man?
2. If the programmers wanted him to look Black Hand, he actually IS a Black Hand guy.
3. If that icon on his jacket is a fist, every reasonable person would say "That's a Black Hand!"
As is, that specific fist symbol is not associated with the Black Hand. Maybe the game developers did at some point want to add them with a different logo, but the game only calls him some "anti-gang mercenary". In-universe there is no evidence of him being a member of the Black Hand.