EDDY Groves' former brother-in-law, who provided maintenance services for ABC Learning, was ''uncomfortable'' with the way his company was asked to invoice the childcare group.
At public examinations into ABC's collapse yesterday, new company chief executive Rowan Webb told the Federal Court in Brisbane he met with Frank Zullo, the owner of Queensland Maintenance Services, in October 2008, to discuss irregular payment procedures. Mr Zullo was married to the sister of Mr Groves, the ABC founder who left the company the previous month.
After investigating the company's finances following Mr Groves' departure, Mr Webb and former chief financial officer Peter Trimble discovered Mr Groves (pictured) had been wrong by about $200 million when he told lenders the company's projected earnings for 2009 would be $265 million.
Mr Webb said he had become aware of the irregular way QMS billed ABC on the second day in his new role at the childcare group.
''The cleaning bill was a very low amount in relation to the amount of work done,'' he said. ''However, we may be paying $100,000 for a sink.''
Mr Webb said a meeting with Mr Zullo was requested and he was asked about QMS's billing procedures.
''He made it quite clear he was uncomfortable in invoicing us that way,'' he said. Mr Webb said Mr Zullo told him the way ABC was invoiced was ''what the client wanted''.
Asked who he meant, Mr Webb told the court: ''It would have been clear to me he was talking about Eddy Groves.''
Also giving evidence yesterday, James Black, the chief financial officer between 2006 and 2008, said he was ''not aware of any significant problems'' with ABC failing to pay its expenses by their due dates in early 2008. The inquiry continues today.
