Corruption hearing: Obeid-linked water company gave $10,000.
Corruption hearing: Obeid-linked water company gave $10,000. Photo: Peter Rae


The Obeid-linked water company at the centre of conflict of
interest allegations that are before the Independent Commission Against
Corruption made multiple donations to the Liberal Party as it sought
political favour, including a direct donation of $10,000 to Joe Hockey's
federal electorate committee in 2010 - just weeks before the election
that year.



The link is the first evidence tying Australian Water
Holdings (AWH) to the 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 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.




Direct donation: Joe Hockey.
Direct donation: Joe Hockey. Photo: Andrew Meares






The donation to North Sydney FEC was paid back in February
last year - $11,000, which was $10,000 plus GST - after reports began
to circulate about corruption concerns at AWH.




The revelation is one of many previously unknown dealings by
AWH as it attempted to cement links with key political figures as it
positioned 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 Assistant Treasurer Arthur 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
ICAC described as opening up communications with the Liberal Party.



Mr Sinodinos 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 he retained his support.



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



''There are important matters being investigated by the NSW
Independent Commission Against Corruption in respect of Sinodinos, the
matters in question happened prior to his entering Parliament and
becoming a minister,'' Mr Abbott said. ''The senator has been been asked
to assist an inquiry into a particular company. He is doing so fully
and frankly, as you'd expect.''



Mr Abbott 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's Penny Wong asked
Senator Sinodinos whether he had abided by ministerial standards in his
dealings with 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 the ICAC.



''Watch this space,'' he said. ''I will be vindicated.''



Senator Wong said the chamber had witnessed a ''cover up'' by the Abbott government.



''There are some extraordinarily serious public allegations made against the minister,'' she said.



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



with Lisa Cox and Jonathan Swan