Senator Arthur Sinodinos, who was both a director/chairman of Australian Water Holdings and an executive office holder of the NSW division of the Liberal Party.
Senator Arthur Sinodinos, who was both a
director/chairman of Australian Water Holdings and an executive office
holder of the NSW division of the Liberal Party. Photo: Andrew Meares


A company at the centre of a corruption inquiry and linked to
crooked former powerbroker Eddie Obeid made multiple donations to the
Liberal Party, including $10,000 to Joe Hockey's federal electorate
committee in 2010 - just weeks before that year's election.



The link is the first evidence tying Australian Water
Holdings (AWH) to the federal Treasurer and is revealed in the
Australian Electoral Commission's ''Donor to Political Party Disclosure
Return - Organisations'' report for the financial year, 2010-11.




The donation of AWH to the ''North Sydney FEC'' was by far
the largest single donation to an electorate fund made by AWH, although
another gift of $10,000 was made to the National Party of Australia
based in Canberra and a donation of $30,000 was paid to the Liberal
Party NSW Division in December 2010.



The donation to North Sydney FEC was paid back in February
2013, in the sum of $11,000 ($10,000 plus GST) after reports began to
circulate about corruption concerns at AWH.




Amid a gathering storm that could yet claim the scalp of
Assistant Treasurer Arthur Sinodinos, who was both a director/chairman
of AWH and an executive office holder of the NSW division of the Liberal
Party, a decision was taken on Monday to repay all donations.



''In light of evidence at the ICAC hearing called Operation
Credo, the Liberal Party of Australia (NSW Division) has decided to
cancel donations from Australian Water Holdings,'' the NSW division
advised in a statement from acting state director Simon McInnes. ''The
amount of $75,636 will be refunded to Sydney Water.''



The revelation is one of many previously unknown dealings by
AWH as it attempted to cement links with key political figures and
position itself to secure lucrative public contracts worth hundreds of
millions of dollars with Sydney Water.



On Tuesday, Prime Minister Tony Abbott gave his unqualified
support to Senator Sinodinos, describing him as a long and faithful
servant of the Parliament.



The NSW Senator had been a director of AWH and then its
chairman, receiving a $200,000 salary, for what counsel assisting the
Independent Commission Against Corruption described as opening up
communications with the Liberal Party. He had also been treasurer of the
NSW division of the Liberal Party and, subsequently, its state
president.



''The short answer is yes,'' Mr Abbott said when asked by the
opposition during question time if the minister retained his support.



Mr Abbott stressed that the matters before the NSW ICAC related to events prior to Senator Sinodinos' entry to Parliament.



''There are important matters being investigated by the NSW
[ICAC] in respect of Sinodinos; the matters in question happened prior
to his entering Parliament and becoming a minister,'' he said.



He stood by comments he made six months ago that he would not
appoint Senator Sinodinos to a ministry ''if there was any cloud
hanging over him''.



In the Senate question time, Labor senator Penny Wong asked
Senator Sinodinos whether he had abided by ministerial standards in his
dealings with the Obeid-linked AWH. She questioned whether he opened
doors to the Liberal Party in his role on the board of AWH.



Senator Sinodinos said he could not comment on the matters before ICAC. ''Watch this space,'' he said. ''I will be vindicated.''



At the end of question time, Senator Wong made a statement saying the chamber had witnessed a ''cover-up'' by the government.



''You would have thought [Sinodinos] would have taken the opportunity in question time today to front the Australian people.''



She described Senator Sinodinos' previous statement to the
Senate as ''inadequate at best and deliberately obfuscating at the
worst''.



Liberal senator Simon Birmingham said it was outrageous that
Labor had tried to ''operate some sort of kangaroo court'' to smear the
Assistant Treasurer.



With Lisa Cox and Jonathan Swan