IBAC suspends principal amid hearing

A Victorian primary school principal has been stood down hours after his links to a wine deal were mentioned in an anti-corruption hearing.

The Education Department says Peter Paul, principal of Chandler Park Primary School, was told late on Tuesday that an investigation into his conduct was underway and he was suspended pending its outcome.

The hearing in Melbourne into the department had just hours earlier been told Mr Paul's son, a wine merchant, supplied more than $7000 worth of Italian wine to former department assistant general manager Jeff Rosewarne.

Mr Rosewarne had told the Independent Broad-based Anti-corruption Commission that Mr Paul offered up his son's business to supply the wine, which Mr Rosewarne said was for departmental functions and stakeholder gifts.

It was billed to Chandler Park Primary School but shipped to Mr Rosewarne's home.

Chandler Park is one of about seven alleged "banker" schools identified as part of the IBAC investigation.

The "banker" schools paid invoices - even if the school did not receive goods or services.

IBAC on Wednesday has heard from regional director for the southeast Victorian area, John Allman, who says using banker schools has never been a legitimate practice.

He says he ripped up records relating to "banker" school Silverton Primary School, and dumped them in a bin at Bunnings after investigators visited his home.