[cobalt-security] strange file

[Theodore Jones <theoj@xxxxxxxxxxxxx>]

Hello All,

I have a user who has telnet/shell access to my machine.  On a routine
tour of things I found this in his user directory, in a folder called
"bin" in his users directory.  It was named "dir" and inside it was
this:

if [ $1 ]
then
    if [ -d $1 -a ! -n "$2" ]
    then
        ( echo -e "*** $1 ***\n"; /bin/ls -aFlh $* ) | /usr/bin/less
-EimX
    else
        ( echo -e "*** `pwd` ***\n"; /bin/ls -adFlh $* ) | /usr/bin/less
-EimX
    fi
else
        ( echo -e "*** `pwd` ***\n"; /bin/ls -adFlh .* * ) |
/usr/bin/less -EimX
fi

Can anyone explain to me what this is for and what this guy is intending
with this?   Does it represent a security concern?

Thanks much,

~ Theo