Arthur Sinodinos’ six-hour testimony before the NSW Independent Commission Against Corruption (ICAC) – over his time on the board of Australian Water Holdings (AWH) – left the former assistant treasurer’s actions open to question this week – after he admitted he did nothing to investigate why a company he chaired was charging exorbitant expenses to the state utility Sydney Water.
The ICAC inquiry is looking into AWH and its links to disgraced ex-Labor MP Eddie Obeid, and heard that Mr Sinodinos – a former AWH director and NSW Liberal Party treasurer – stood to make up to $20 million if AWH won a lucrative contract with Sydney Water.
During his appearance at the inquiry on Thursday he was asked to defend what he did to earn an alleged $200,000 salary from AWH for undertaking between 25 and 45 hours of work a year.
Mr Sinodinos told the hearing that he was not brought into the company as a financial officer or political lobbyist but “in a business sense…as a door-opener.”
AWH paid $72,000 in donations to the NSW Liberal Party when the Senator was on its board, which he also denied knowledge of.
In testimony punctuated by either “I don’t recall” or “I don’t recollect”, Senator Sinodinos said he had no knowledge of many of the intricate workings of AWH’s business dealings, and that for three years his friend and Liberal fundraiser Paul Nicolaou was on a monthly retainer of $5000 to lobby on behalf of AWH.
Evidence presented to the inquiry suggests that three Liberal-aligned lobbying companies were receiving $17,000 a month from AWH while Mr Sinodinos was a director, at a time when the company was hard-pushed to meet obligations to pay tax and superannuation.
Without the inquiry’s findings presenting a complete vindication of Senator Sinodinos’ actions at AWH, the damage to his political ambitions could be irreversible. A return to cabinet for one of the Liberal’s most articulate power brokers may be a long way off.
The ICAC inquiry is likely to run until the end of next week.