Another top executive from ABC Learning to go to trial

A TOP executive of the failed ABC Learning childcare group will stand trial over an alleged deal with the company's kingpin, Eddy Groves.

A TOP executive of the failed ABC Learning childcare group will stand trial over an alleged deal with the company's kingpin, Eddy Groves.

Martin Kemp, who was chief executive of ABC Learning's Australian and New Zealand operations, was committed for trial yesterday on criminal counts of breaching and failing to discharge his duties as a company director.

If convicted he will face up to five years' imprisonment and a fine of $200,000.

The two charges relate to Mr Kemp's purported sale of three centres owned by companies controlled by him to ABC Learning.

The Australian Securities & Investments Commission alleges that in January 2008 ABC Learning paid deposits of $3.082 million - about 75 per cent of the purchase price - to the Kemp companies Volbane Pty Ltd and Silipo Pet Ltd. The board of ABC learning was not informed of the transaction, commonwealth prosecutors say.

It was just months before the chain collapsed with debts totalling $1.6 billion.

Mr Groves has been charged with one count of breaching the Corporations Act and was committed in January to stand trial. He has indicated he will fight the charge.

Both men will face the Brisbane District Court at a date to be fixed.

A third charge against Mr Kemp, under the Corporations Act, was struck out during his two-week committal hearing in Brisbane Magistrates Court.

He will remain on bail until the trial.

JAMIE WALKER, AAP