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Arthur Sinodinos: I will be vindicated at Icac inquiry into water deal Arthur Sinodinos: I will be vindicated at Icac inquiry into water deal
(35 minutes later)
Arthur Sinodinos has said he will be vindicated by his appearance at the New South Wales Independent Commission Against Corruption (Icac) over allegations he stood to make up to $20m while director of a company that was lobbying the state government for a lucrative contract.Arthur Sinodinos has said he will be vindicated by his appearance at the New South Wales Independent Commission Against Corruption (Icac) over allegations he stood to make up to $20m while director of a company that was lobbying the state government for a lucrative contract.
The assistant treasurer made the statement in the Senate on Tuesday after being asked by the Labour senator Penny Wong if the purpose of his appointment to the Australian Water Holdings (AWH) board in 2008 was to “open lines of communication with the Liberal party”.The assistant treasurer made the statement in the Senate on Tuesday after being asked by the Labour senator Penny Wong if the purpose of his appointment to the Australian Water Holdings (AWH) board in 2008 was to “open lines of communication with the Liberal party”.
“The only statement I can make as the commission of inquiry is under way is I will be attending as a witness and watch this space. I will be vindicated in terms of what I’ve said to the Senate,” he said, referring to previous statements to the Senate that he had divested himself of all AWH interests before entering the Senate in 2011.“The only statement I can make as the commission of inquiry is under way is I will be attending as a witness and watch this space. I will be vindicated in terms of what I’ve said to the Senate,” he said, referring to previous statements to the Senate that he had divested himself of all AWH interests before entering the Senate in 2011.
“And if I need any tutoring on what to say before Icac I can ask Greg Combet or Minister [Doug] Cameron,” Sinodinos said. Combet and Cameron have both been witnesses in Icac hearings. “And if I need any tutoring on what to say before Icac I can ask Greg Combet or minister [Doug] Cameron,” Sinodinos said. Combet and Cameron have both been witnesses in Icac hearings.
Wong then tried to ask Sinodinos if he had been paid $200,000 for 100 hours’ work a year and if he had stood to make between $10m and $20m if AWH won a government contract. At the end of question time Wong accused the government of colluding in a cover-up with Sinodinos after five of the Labor party’s three questions and six supplementary questions were ruled out of order.
Wong said Sinodinos was being aided and abetted by the government in avoiding questions.
“We saw today the continuing cover-up in the Abbott government of senator Sinodinos, there are some extraordinarily serious public allegations made against the minister and you would have thought he would have taken the opportunity in question time today to front the Australian people and front this chamber,” she said.
Wong had earlier tried to ask Sinodinos if he had been paid $200,000 for 100 hours’ work a year and if he had stood to make between $10m and $20m if AWH won a government contract.
Both questions were ruled out of order because they did not relate directly to Sinodinos’s ministerial responsibilities.Both questions were ruled out of order because they did not relate directly to Sinodinos’s ministerial responsibilities.
Sinodinos’s parliamentary colleagues have closed ranks around him, saying the matter should be left to Icac while Labor politicians have trodden carefully with only one, Kelvin Thomson, calling for Sinodinos to resign.Sinodinos’s parliamentary colleagues have closed ranks around him, saying the matter should be left to Icac while Labor politicians have trodden carefully with only one, Kelvin Thomson, calling for Sinodinos to resign.
Sinodinos served as an AWH director for three years at a time when it was lobbying for a lucrative state government contract which could have earnt Sinodinos between $10m and $20m from his shareholdings in the company, Icac has heard. “If this government and this minster took ministerial standards seriously they would ensure the minster not only answered questions today but gave a full explanation to the Senate and through it the Australian people,” Wong said in her statement after question time.
Counsel assisting, Geoffrey Watson, SC, told the commission Sinodinos was paid $200,000 for what amounted to about 100 hours’ work for the entire year. Senator Simon Birmingham responded on behalf of the government, accusing the Labor party of trying to run a “kangaroo court” in question time.
“They come in here devoid of any sense of process, devoid of any sense of relevance ... and simply try to slur the good name of a member of our senate ... the behaviour we have seen from opposite today is outrageous,” he said.
He said it was “humiliating” for the opposition to have five questions ruled out of order within one hour.
“I am proud to have senator Sinodinos as a colleague, he is a fine Australian, he has served this country with distinction,” he said. “He is someone who has done wonderful things for this country and will continue to do into the future.”
Sinodinos served as an AWH director for three years at a time when it was lobbying for a lucrative state government contract which could have earned Sinodinos between $10m and $20m from his shareholdings in the company, Icac has heard.
Counsel assisting, Geoffrey Watson SC, told the commission Sinodinos was paid $200,000 for what amounted to about 100 hours’ work for the entire year.
“This might seem like a lot for a couple of weeks’ work, especially when one considers that the chairman of Sydney Water, and that is a really huge business ... was paid just over $100,000 a year,” he said.“This might seem like a lot for a couple of weeks’ work, especially when one considers that the chairman of Sydney Water, and that is a really huge business ... was paid just over $100,000 a year,” he said.
The family of the corrupt former Labor powerbroker Eddie Obeid were allegedly “secret stakeholders” in the company and could have made up to $60m from the deal. The commission heard Sinodinos was brought into the company in 2008 as a connection to the Liberal party and corruptly lobbied his New South Wales colleagues to grant AWH the contract.The family of the corrupt former Labor powerbroker Eddie Obeid were allegedly “secret stakeholders” in the company and could have made up to $60m from the deal. The commission heard Sinodinos was brought into the company in 2008 as a connection to the Liberal party and corruptly lobbied his New South Wales colleagues to grant AWH the contract.
At the time he was treasurer of the state branch of the Liberal party and was soon to become its president. At one point he was one of five directors of AWH when it had only 10 employees.At the time he was treasurer of the state branch of the Liberal party and was soon to become its president. At one point he was one of five directors of AWH when it had only 10 employees.
“It’s presently difficult to offer observations on the conduct of Mr Sinodinos,” Watson said. “It’s quite transparent that Mr Sinodinos’s true role in Australian Water Holdings was to open lines of communication with the Liberal party and there will be evidence that he tried to do so.”“It’s presently difficult to offer observations on the conduct of Mr Sinodinos,” Watson said. “It’s quite transparent that Mr Sinodinos’s true role in Australian Water Holdings was to open lines of communication with the Liberal party and there will be evidence that he tried to do so.”
The Liberal party has since returned $75,000 in donations from AWH.The Liberal party has since returned $75,000 in donations from AWH.
Sinodinos stepped down from the company and relinquished his shareholdings to AWH in 2011 when he took up a Senate vacancy, at which time the former NSW Labor treasurer Michael Costa was allegedly approached by Obeid and his son to take up chairmanship of the company.Sinodinos stepped down from the company and relinquished his shareholdings to AWH in 2011 when he took up a Senate vacancy, at which time the former NSW Labor treasurer Michael Costa was allegedly approached by Obeid and his son to take up chairmanship of the company.
Icac has uncovered no evidence of corrupt conduct by Costa, and Watson said his role at AWH had been “a positive one cleaning up the activities of Australian Water Holdings”.Icac has uncovered no evidence of corrupt conduct by Costa, and Watson said his role at AWH had been “a positive one cleaning up the activities of Australian Water Holdings”.
Sinodinos will also face a second Icac hearing next month into a slush fund allegedly created for the state Liberal MP Chris Hartcher with contributions from questionable business figures.Sinodinos will also face a second Icac hearing next month into a slush fund allegedly created for the state Liberal MP Chris Hartcher with contributions from questionable business figures.
The opposition leader, Bill Shorten, has called the situation “most serious” but intensified the comments made through a spokesman in the morning that he was confident the prime minister would address the issue.The opposition leader, Bill Shorten, has called the situation “most serious” but intensified the comments made through a spokesman in the morning that he was confident the prime minister would address the issue.
“I believe the prime minister should address this matter today,” he said in Canberra. “The prime minister needs to explain what course of action he intends to take.”“I believe the prime minister should address this matter today,” he said in Canberra. “The prime minister needs to explain what course of action he intends to take.”
Liberal minister Jamie Briggs was reluctant to comment on the Icac proceedings, but said: “I will certainly give Arthur Sinodinos a character reference, he’s a very good person.”Liberal minister Jamie Briggs was reluctant to comment on the Icac proceedings, but said: “I will certainly give Arthur Sinodinos a character reference, he’s a very good person.”
Another senior Liberal, Josh Frydenberg, said Sinodinos was a person of the highest integrity. “I look forward to working with him for many, many years to come,” Frydenberg said.Another senior Liberal, Josh Frydenberg, said Sinodinos was a person of the highest integrity. “I look forward to working with him for many, many years to come,” Frydenberg said.
Labor’s Bernie Ripoll said Sinodinos’s ministerial future was a matter for Abbott.Labor’s Bernie Ripoll said Sinodinos’s ministerial future was a matter for Abbott.
“I’m sure the prime minister will be saying something on that today because this is a very serious issue, these are very serious allegations,” he said. “Whether he should step down or not will be a matter for the prime minister.”“I’m sure the prime minister will be saying something on that today because this is a very serious issue, these are very serious allegations,” he said. “Whether he should step down or not will be a matter for the prime minister.”
Labor frontbencher Anthony Albanese said Sinodinos was entitled to the presumption of innocence.Labor frontbencher Anthony Albanese said Sinodinos was entitled to the presumption of innocence.
But Labor backbencher Thomson said Sinodinos should leave the government’s frontbench. “I think it would be in the best interests for the integrity of the system if Senator Sinodinos were to step aside,” he said. “If he doesn’t, Tony Abbott should require him to do that.”But Labor backbencher Thomson said Sinodinos should leave the government’s frontbench. “I think it would be in the best interests for the integrity of the system if Senator Sinodinos were to step aside,” he said. “If he doesn’t, Tony Abbott should require him to do that.”
The parliamentary secretary to the treasurer, Steve Ciobo, said he believed Sinodinos would be cleared of any wrongdoing.The parliamentary secretary to the treasurer, Steve Ciobo, said he believed Sinodinos would be cleared of any wrongdoing.
“We’ve got a bunch of half-cocked Labor people going out there trying to attempt to sully his name,” Ciobo told Sky News.“We’ve got a bunch of half-cocked Labor people going out there trying to attempt to sully his name,” Ciobo told Sky News.
The 57-year-old senator was chief of staff to the former prime minister John Howard from 1997 to 2006 before working as an investment banker.The 57-year-old senator was chief of staff to the former prime minister John Howard from 1997 to 2006 before working as an investment banker.