Assistant Treasurer Arthur Sinodinos stood down on Wednesday from the front bench, amid corruption inquiries into his involvement in the company Australian Water Holdings (AWH).
The Assistant Treasurer made a short statement at the beginning of Senate Question Time, after facing three days of damaging media and political pressure about his involvement in AWH, a company associated with corrupt former NSW Labor Minister Eddie Obeid.
Senator Sinodinos will stand aside while giving evidence to the Independent Commission Against Corruption (ICAC) in New South Wales.
Prime Minister Tony Abbott described his decision as the “right and decent thing”. “I look forward to his restoration to the ministry,” Mr Abbott said.
Arthur Sinodinos, along with other labor and liberal operatives stood to gain tens of millions of dollars from a deal involving a company linked to the family of discredited former NSW labor powerbroker Eddie Obeid, the corruption inquiry heard on Monday.
Sinodinos, treasurer of the Liberal Party in NSW at the time under investigation, was installed on the board of the Obeid-linked Australian Water Holdings (AWH) in 2008 in order to open lines of communication with the Liberal Party’, as it was stated in the ICAC hearing.
As an AWH director Arthur Sinodinos was earning $200,000 per anum for approximately 100 hours of work per year, and would have ”enjoyed a $10 or $20 million payday” if Australian Water had won a lucrative contract with the state government owned Sydney Water, according to the hearing.
Senator Sinodinos has since abandoned his rights to shares in the water infrastructure company, denies any wrongdoing and is ready to testify as a witness and help the enquiry. Arthur Sinodinos was given 5 per cent of AWH when he became a director in 2008, plus another 2.5 per cent if the deal with Sydney Water was to go through.
Source: Fairfax Media