From memory when I did my GFPT, if I was trained at Bankstown and wanted to go flying at say Coffs Harbour. I could as long as the school was satisfied I understood the local area (procedures, weather etc.) and the aircraft. Technically the school could sign me off without seeing my flying like a PPL although I am sure 99% would want a dual flight.
But you are right, I don't see how what this guy is doing is legal.