Nick Efstathiadis

By political reporter Simon Cullen

Friday 12 September 2014

Senator Arthur Sinodinos arrives at the ICAC hearing into Australian Water Holdings. Photo: Senator Sinodinos appeared before ICAC in April to discuss his involvement with Australian Water Holdings. (AAP: Dan Himbrechts)

Related Story: Sinodinos was AWH 'door opener' but above board, he tells ICAC

Influential Liberal Party senator Arthur Sinodinos is due to front an anti-corruption hearing in Sydney again today as part of an ongoing investigation into allegations of business donations and political favours.

Senator Sinodinos stood aside from his role as the assistant treasurer in March, saying he did not want the Independent Commission Against Corruption (ICAC) probe to be a "distraction" for the Federal Government.

ICAC was told last week that Senator Sinodinos was present during a Liberal Party meeting that discussed how to deal with a New South Wales ban on political donations from property developers.

The party's finance committee considered the idea of funnelling donations through the Canberra-based Free Enterprise Foundation as a way around the ban.

Liberal Party fundraiser Paul Nicolaou told the ICAC hearing he put forward the idea but then left it with the committee members.

"I advised the [finance] committee of the Free Enterprise Foundation and what it does," he said.

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"I assumed that the finance committee would have then taken legal advice to ensure that what we would do with the Free Enterprise Foundation was above board."

Mr Nicolaou said Senator Sinodinos was at that meeting as well as the then-Liberal Party state director in New South Wales, Mark Neeham.

Mr Neeham resigned from the role last year and said he was seeking "new challenges and a new role" after 10 years with the Liberal Party.

Senator Sinodinos appeared before ICAC in April to discuss his involvement in a company called Australian Water Holdings (AWH).

He was a director of AWH from October 2008 until November 2011, which included a 12-month stint as the company's chairman.

ICAC is looking into allegations that between 2004 and 2012, AWH falsely billed Sydney Water for expenses on an infrastructure project and used the money for executive salaries and political donations.

The company had links to disgraced former NSW Labor MP Eddie Obeid.

More on this story:

ICAC: Liberal senator Arthur Sinodinos set to front NSW anti-corruption hearing - ABC News (Australian Broadcasting Corporation)

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