Oh, come now. Such a statement can't be taken out of context of conversation. Looking up to the parents, it reads like this:
"Says it all, doesn't it?" -- implication of something fishy
"What does it say?" -- asking what is the implication
"It is the appearance of impropriety,[...] it appears they offered [...]
It appears dirty but maybe can't be proven."
Notice I said "appears" three times. How would a common person interpret these activities? What does it look like? This is how it looks.