1099 Expenses

Here is the situation. A Sales Manager works for a "large corporation" and is concerned that what "large corporation" is asking him to do is not proper or follows IRS guidelines. All the Sales Personnel are 1099 Independent Contractors (Sales only). The "large corporation" does not want to pay the expenses for luncheon presentations bought for presentations attendees directly to the 1099 Contractors since the amounts cross the IRS threshold and $600 mark quickly, in first month or two, and they would have to set up separate vendor accounts for each of the 1099 Independent Contractors and also set up a full administration just to handle processing the myriads of 1099 sales personnel and the constant turnover. The "large corporation" requires their full time employee and Sales Manager to accept all receipts from all 1099 Contractors and submit on the Sales Manager's own personal expense report and then when he is reimbursed by "large corporation" just to pay the 1099 Contractors out of his expense reimbursement personally. Questions from Sales Manager: 1. Is this a legitimate way to process expenses per IRS? 2. Does this create any risk or liability to Sales Manager? 3. Does this create any risk or liability to 1099 Contractors? 4. Does this create any risk or liability to "large corporation"? 5. If this is not a proper, legitimate or follow IRS guidelines then how should Sales Manager extricate himself from this situation? Any guidance is much appreciated.