Chair doing half the work of the property manager

My Body Corp Committee in Qld. has a service agreement with a offsite property management company. The Committee Chair has informally agreed to modify the agreement in practice by doing half the stuff herself. The management co is still getting paid the full fee but consequently doing less than half the work they are hired to do. When you think about it, isn’t that essentially embezzlement in a round about way? And, is that approach even legal?