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Arthur Sinodinos stands down as assistant treasurer Arthur Sinodinos stands down as assistant treasurer
(35 minutes later)
Arthur Sinodinos has been forced to step down as the assistant treasurer while the Independent Commission Against Corruption investigation he is involved in runs it course though the prime minister says he is looking forward to welcoming him back to the ministry. Arthur Sinodinos has been forced to step down as the assistant treasurer while the Independent Commission Against Corruption investigation examines his controversial role at Australian Water Holdings.
“I do not want this sideshow to be an unnecessary distraction to the important work of the government,” Sinodinos told the Senate just before question time on Wednesday. Despite having enjoyed the continued backing of prime minister Tony Abbott, Sinodinos told the Senate on Wednesday: “I do not want this sideshow to be an unnecessary distraction to the important work of the government.”
Sinodinos thanked his colleagues for their “strong support and their ongoing faith in my integrity”.Sinodinos thanked his colleagues for their “strong support and their ongoing faith in my integrity”.
“The Icac is an important forum, the appropriate forum, for me to answer any questions in relation to this matter,” he said.“The Icac is an important forum, the appropriate forum, for me to answer any questions in relation to this matter,” he said.
However, he did not make it clear if he was stepping aside for just the current hearing or for Icac’s April hearing into a different investigation which also involves him. It is understood the prime minister will decide when it is appropriate for Sinodinos to return.However, he did not make it clear if he was stepping aside for just the current hearing or for Icac’s April hearing into a different investigation which also involves him. It is understood the prime minister will decide when it is appropriate for Sinodinos to return.
The finance minister, Mathias Cormann, will act as the assistant treasurer.The finance minister, Mathias Cormann, will act as the assistant treasurer.
The prime minister, Tony Abbott, has continued to publicly support Sinodinos and said it was his decision alone to step aside. The prime minister, Tony Abbott, said it was Sinodinos’s decision to step aside but he looked forward to inviting the senator back into the ministry.
“What we see here is a member of this parliament doing the right and the honourable things … which is what you’d expect from someone like Senator Sinodinos who has given their country, given our country, such long and faithful and decent service,” he said.“What we see here is a member of this parliament doing the right and the honourable things … which is what you’d expect from someone like Senator Sinodinos who has given their country, given our country, such long and faithful and decent service,” he said.
During question time Abbott emphasised Sinodinos had stepped aside for the duration of the Icac investigation and had not resigned adding: “I just want to make it absolutely clear that what we see here is a member of the parliament doing the right and honourable thing.” During question time in Canberra Abbott emphasised Sinodinos had stepped aside for the duration of the Icac investigation and had not resigned adding: “I just want to make it absolutely clear that what we see here is a member of the parliament doing the right and honourable thing.”
Abbott refused to be drawn on whether he had discussed Australian Water Holdings (AWH), the company at the centre of the Icac hearing, with Sinodinos saying he was not going to provide a running commentary on private conversations. Abbott refused to be drawn on whether he had discussed Australian Water Holdings, the company at the centre of the Icac hearing, with Sinodinos saying he was not going to provide a running commentary on private conversations.
“I want to make it crystal clear he has not resigned...he has acted in an exemplary fashion in accordance with the Westminster system and I look forward to his return [to the ministry],” he said.“I want to make it crystal clear he has not resigned...he has acted in an exemplary fashion in accordance with the Westminster system and I look forward to his return [to the ministry],” he said.
He confirmed Sinodinos will not draw a ministerial salary or have access to ministerial entitlements.He confirmed Sinodinos will not draw a ministerial salary or have access to ministerial entitlements.
The Labor party upped the pressure on the senator in the hours before he stood down, suspending standing orders in the senate to force a debate on whether Sinodinos should explain himself to the chamber. The Labor party upped the pressure on the senator in the hours before he stood down, suspending standing orders in the senate to force a three-hour debate on whether Sinodinos should explain himself to the chamber.
The party had previously said it was a “serious matter” that needed to be addressed but stopped short of calling for Sinodinos to step down earlier in the week.The party had previously said it was a “serious matter” that needed to be addressed but stopped short of calling for Sinodinos to step down earlier in the week.
Sinodinos stood to make between $10m and $20m from his role at AWH had the company won a lucrative state government contract, Icac was told, and was paid $200,000 for 100 hours’ work a year. Despite having no experience of the water industry, Sinodinos was drafted into AWH in 2008 shortly after a nine-year stint as chief of staff to former prime minister John Howard. Icac heard that he stood to make between $10m and $20m had the company won a lucrative state government contractand was paid $200,000 for 100 hours’ work a year.
Senior Liberal party figures, including the former prime minister John Howard, have been effusive in their praise and support of Sinodinos but the Labor party has mounted a concerted campaign to put pressure on him to step aside. Senior Liberal party figures, including Howard, have been effusive in their praise and support of Sinodinos but Labor has kept the pressure up.
Senate debated a motion for three hours that Sinodinos make a statement to the Senate to “explain” himself on Wednesday morning. It wrapped up only when the president put an end to it at 1.45pm, saying it was time for matters of public interest. At question time, opposition leader Bill Shorten asked why Abbott had full confidence in Sinodinos on Monday and Tuesday but was content to see him step down on Wednesday.
Leader of the opposition in the senate, Penny Wong, said in the morning Sinodinos should stand down if he refused to address the senate on his dealings with AWH, “The prime minister has consistently dodged questions about what he knew about this affair and when he knew it,” he said.
“The prime minister knows more about this affair than he’s telling Australians. The question is at what point would Tony Abbott ever consider sacking a minister?”
Senate opposition leader Penny Wong said in the morning debate that Sinodinos should stand down if he refused to address the senate on his dealings with AWH,
“Icac has made a number of statements which really fly in the face of assertions Senator Sinodinos made to chamber. It is the case the Independent Commission Against Corruption is investigating, we accept that, but we also believe senators in this place when confronted with public allegations which are not consistent with statements made to chamber should clarify their statements,” she said.“Icac has made a number of statements which really fly in the face of assertions Senator Sinodinos made to chamber. It is the case the Independent Commission Against Corruption is investigating, we accept that, but we also believe senators in this place when confronted with public allegations which are not consistent with statements made to chamber should clarify their statements,” she said.
Icac is in its first week of a three-week hearing into AWH but Sinodinos will also be examined at a separate hearing at the end of April into a slush fund and businesspeople associated with it.Icac is in its first week of a three-week hearing into AWH but Sinodinos will also be examined at a separate hearing at the end of April into a slush fund and businesspeople associated with it.
A senior manager at AWH, William MacGregor-Fraser, took the stand on Wednesday just before Sinodinos resigned and was asked if he thought Sinodinos’s salary seemed excessive. A senior manager at AWH, William MacGregor-Fraser, gave evidence to Icac on Wednesday and was asked if he thought Sinodinos’s salary seemed excessive.
He replied: “Yes, it does a little bit.”He replied: “Yes, it does a little bit.”
MacGregor-Fraser said Sinodinos did not have experience in water infrastructure when he was hired but denied he was given the job to open doors to Liberal politicians, contradicting evidence given by AWH’s former executive chairman John Rippon on Tuesday.MacGregor-Fraser said Sinodinos did not have experience in water infrastructure when he was hired but denied he was given the job to open doors to Liberal politicians, contradicting evidence given by AWH’s former executive chairman John Rippon on Tuesday.
The family of the corrupt former Labor powerbroker Eddie Obeid were allegedly “secret stakeholders” in AWH and could have made up to $60m from the deal. Icac has 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 AWH and could have made up to $60m from the deal. Icac has heard Sinodinos was brought into the company in 2008 as a connection to the Liberal party and it is alleged that he corruptly lobbied his New South Wales colleagues to grant AWH the contract.
At the time he was the 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 the treasurer of the NSW Liberals and soon became its president. At one point he was one of five directors of AWH when it had only 10 employees.
AWH also gave $75,000 to the Liberal party in 2008 which it allegedly put down as an expense to the state-owned Sydney Water, though Sinodinos had said he did not have any knowledge about the donation.AWH also gave $75,000 to the Liberal party in 2008 which it allegedly put down as an expense to the state-owned Sydney Water, though Sinodinos had said he did not have any knowledge about the donation.
The Liberal party returned the donation in 2011.The Liberal party returned the donation in 2011.
Sinodinos stepped down from the company and relinquished his shareholdings to AWH in 2011 when he took up a Senate vacancy.Sinodinos stepped down from the company and relinquished his shareholdings to AWH in 2011 when he took up a Senate vacancy.
The leader of the opposition in the senate, Penny Wong, has accused the government of colluding in a “cover-up” with Sinodinos but high-ranking Liberal members and parliamentarians have stood behind him.The leader of the opposition in the senate, Penny Wong, has accused the government of colluding in a “cover-up” with Sinodinos but high-ranking Liberal members and parliamentarians have stood behind him.
Howard said it was not appropriate for him to comment on the substance of the matter but he supported the senator.Howard said it was not appropriate for him to comment on the substance of the matter but he supported the senator.
“Arthur Sinodinos is a man of great integrity and ability,” he said. “I continue to hold him in the highest regard.”“Arthur Sinodinos is a man of great integrity and ability,” he said. “I continue to hold him in the highest regard.”
Sinodinos is also being examined in a separate Icac investigation into a NSW Liberal Party slush fund which businessmen allegedly contributed to in exchange for favourable treatment by the state’s parliament.Sinodinos is also being examined in a separate Icac investigation into a NSW Liberal Party slush fund which businessmen allegedly contributed to in exchange for favourable treatment by the state’s parliament.
The hearings on that inquiry start next month.The hearings on that inquiry start next month.