Ian Hamm was appointed AAV executive director in April 2009 and on Wednesday gave evidence in a committal hearing at the Warrnambool Magistrates Court.

Former long-time Framlingham Aboriginal Trust (FAT) administrator Geoff Clark, his wife Trudi and two of their sons, Aaron and Jeremy, have been charged by Victoria Police fraud and extortion squad detectives with a total of 1170 charges after seven-year investigation Operation Omega.

Mr Hamm said in a statement tendered to the court that before issues were raised in 2010 that Framlingham trust always appeared to be running smoothly under chief Geoff Clark.

He said in the mid 2000s Framlingham was going along as it always did and nothing drew attention.

Geoff Clark had a tight leadership group with Michael Fitzgerald his assistant.

"He appeared to do the grunt work and Geoff was the ideas man," he said.

Mr Hamm said Mr Fitzgerald would telephone him now and again and ask for funding or if he wanted to discuss the feasibility of projects.

"In about mid 2010 Mick Fitzgerald telephoned me and asked for a meeting," he recalled.

"I thought it was about funding but I was taken aback as he wanted to discuss large financial discrepancies at FAT."

Mr Hamm said Mr Fitzgerald attended a meeting and told him he had a falling out with Geoff Clark.

"He cited this fallout due to identifying financial irregularities in the financial management of the trust," he said.

Mr Hamm said Mr Fitzgerald was upset when he tried to communicate a large amount of information.

"It was unexpected, as he and Geoff were so close for years, and here he was telling us this information," he said.

Mr Hamm had a second meeting with community members in Melbourne.

"They were angry, upset and it was a catalyst for a large amount of stuff over the years," he said.

Mr Hamm said he informed the then Aboriginal Affairs Minister Richard Wynne and the minister's advice was to proceed as needed.

"We looked at our records and it was clear that we didn't keep a very good record of Fram," he said.

"There were intermittent records of annual meetings held."

Mr Hamm said the issue of community shares was also front and centre as it could determine who had control of the trust.

He said that in mid to late 2010 he went to Framlingham for a meeting with Geoff Clark, Trudi Clark and others, telling them he intended to conduct a financial review of FAT.

Mr Hamm said Geoff Clark was OK about the review but there was anger in the room because some people felt their integrity was being questioned.

Firm BDO conducted the review for two financial years from July 2008.

"I can't recall any objections such as singling out why Mick Fitzgerald may say such things," he said.

"There was no overt reaction to anything in particular."

Mr Hamm said the BDO report was completed in early 2011, essentially saying there was enough in terms of financial irregularities to require further investigation, such as the transfer of money from FAT to Kirrae Whurrong Community Incorporated.

A special meeting was then held to inform the community of the report findings.

"We informed the Minister of Aboriginal Affairs Jeanette Powell and our recommendation was to report it to the Victoria Police," Mr Hamm said.

On April 19, 2011, Mr Hamm signed a letter from the department to then Chief Commissioner of Police Simon Overland.

That led to seven-year investigation Operation Omega by detectives from the fraud and extortion squad that last year resulted in four members of the Clark family being charged with 1171 offences.

The committal hearing continues today with the cross-examination of bookkeeper Allan Thomas.