The first banker school principal to appear at the Independent Broad-based Anti-corruption Commission hearing admitted Department of Education funds stored in the school's account were spent on overseas trips for his staff and up to $30,000 of wine for sacked Victorian Department finance chief Nino Napoli. But he insists he was blind to any corruption.

The principal, who has been involved with banker schools since the mid-80s, said he believed the transactions were "highly transparent" and did not believe there was anything wrong with the scheme as he trusted Mr Napoli.

The scheme was a "web of intrigue", he said.

The principal said two of five school-funded overseas trips were paid for by an account set up by Mr Napoli at the end of 2006. Mr Paul has known Mr Napoli for 22 years.

Between 2007 and 2014, he travelled to China twice, New Zealand twice and to Boston. He took four people with him on each China trip and did not think the travel was excessive.

More than $150,000 in false invoices was paid out by Chandler Park Primary School to various companies associated with Mr Napoli between 2007 and 2014, IBAC documents show.

A series of tax invoices signed by Mr Paul showed his school paid up to $30,000 dollars on fine Italian wine bought from his son's wine importing business.

These payments were recorded as money spent on "professional development", but most of the wine was sent directly to Mr Napoli's home address. 

Two invoices for dozens of bottles of expensive wine charged to the school in 2007 and 2009 – with one order including 12 bottles of vintage Fuligni Brunello di Montalcino at $83 each – totalled $2320 and $3695, respectively.

Mr Paul said he did not know that a contract for printing and design work was used on a new $4500 desk for the department's ex-acting secretary Jeff Rosewarne until after the investigation was launched.

Further evidence showed Mr Napoli instructed Mr Paul's wine merchant son Matthew Paul to charge the school, or other companies associated with Mr Napoli, for wine, but to remove his name and address from the invoices.

Peter Paul has worked for the Department of Education for 50 years and has been a principal of Chandler Park Primary School for 15 years.

IBAC is investigating claims that $2.5 million of school funding allocated to a number of "banker" schools, was spent on wine, travel and birthday parties for Victorian Education Department officials using bogus invoices. Banker schools receive interest on their accounts.

Mr Paul said there was a remaining $11,000 in the banker school account, some of which would be spent on an early learning conference.

He said he was not informed by the Department of Education of a damning 2010/11 audit condemning the practice of banker schools.

At a previous hearing, Jeff Rosewarne admitted he used the Chandler Park Primary School to purchase large amounts of wine.

It was reported in The Age that Chandler Park Secondary College's board stood by Mr Paul in the wake of the IBAC hearings.