I asked him about this and he said that all outgoing links were redirected using a script someone had set up for him, which makes the link look like its internal but then redirects to the external site. The user sees no difference but it keeps his pagerank flowing through his site. He had been advised that with these outgoing links (in content articles so relevant) was like a basket full of holes leaking Pagerank!!
It got me thinking, its unethical sure, but both bots and people get the site and see the same thing, so is it considered bad by google? Is it right to keep all the links pointing inwards?