ICAC: Arthur Sinodinos fronts corruption inquiry

ICAC adjourns, six and a half hours after Liberal Senator Arthur Sinodinos entered the witness box. His evidence is finished, no doubt to his relief.

There are indications the inquiry will run until the end of next week. It was originally expected to finish on Friday.

That concludes our live blog. Thank you for reading.

The witness list for tomorrow at ICAC has been updated. We had been expecting to hear from former NSW Liberal minister Chris Hartcher's one-time adviser Tim Koelma.

He is no longer appearing tomorrow, but a string of Liberal lobbyists who were paid handsomely by Australian Water to talk about sewerage pipes and drains will be up, including Australian Hotels Association NSW chief executive Paul Nicolaou and party powerbroker Michael Photios.

Sinodinos tells his own barrister that he was making assiduous efforts to attract "cornerstone investors" to Australian Water but it was "chicken and egg": the company needed a public-private partnership with the government.

On the thorny subject of his $200,000 salary, Sinodinos says he "hoped in a business sense I was a door-opener".

He says he wasn't brought on board as a "second chief financial officer", chief executive or political lobbyist.

Sinodinos' own barrister, Tony Bannon, SC, is up and questioning his client.

Unsurprisingly, this is the friendliest exchange at ICAC all day.

Counsel for Eddie Obeid, former Media Watch host Stuart Littlemore, SC, is on his feet and questioning Sinodinos.

Commissioner Megan Latham laughs at one point, before apologising and insisting she wasn't laughing at him.

"You never even laugh at my jokes, Commisioner!" Littlemore rejoins.

Latham says that Sinodinis is "anxious to finish today" but his own lawyer still has to question him. ICAC typically adjourns at 4 pm.

"Eddie "He Who Must Be" Obeid himself now is the central figure in a quite compelling national game you might call "Push of War.""Credit: Nic Walker

Sinodinos' barrister Tony Bannon, SC, suspects the legal eagle acting for Rod De Aboitiz is asking questions aimed at his Federal Court case rather than the ICAC inquiry.

"It's no secret there are other proceedings on foot," Commissioner Megan Latham says. "I don't want this to start unravelling into a general free for all."

Sinodinos admits he reassured De Aboitiz in May 2010 about his concerns about financial issues at Australian Water.

His evidence suggests he did very little.

Daniel Feller, SC, the barrister for disgruntled shareholders in Australian Water including Rod De Aboitiz (the financial whizz branded a "smart arse" by Sinodinos' silk) is on his feet and questioning the Liberal heavyweight.

Incidentally, De Aboitiz is suing Sinodinos, former NSW Treasurer Michael Costa and other current and former directors of Australian Water in the Federal Court to recover his investment in the company. The directors are fighting the claims.

Watson has finished his robust questioning of Sinodinos.

Now other legal eagles are cross-examining him, starting with Sydney Water's formidable brief Bruce Oslington, SC.

We're back on the delicate matter of former Sydney Water boss Kerry Schott.

She was referred to as a "bitch" in an email sent to Sinodinos - a term also favoured by Eddie Obeid, apparently - because she was blocking a PPP between Australian Water and Sydney Water.

"I condemn it. I think it's awful," Sinodinos says. "It doesn't reflect very well on the people who said it."

Refused to bow: Sydney Water chief executive Dr Kerry Schott.Credit: Sasha Woolley

Sinodinos admits he knew crooked Labor powerbroker Eddie Obeid's youngest son Eddie junior was employed by Australian Water's Queensland operation.

He also says he met John McGuigan, who was found corrupt in a previous ICAC inquiry into a coal deal linked to the Obeid family, to discuss his potential investment in Australian Water.

Sinodinos says he was unaware the Obeids invested $3 million in Australian Water. The family insists the money was a loan but ICAC says the family were "secret stakeholders" in the company.

ICAC continues to investigate whether Eddie Obeid (pictured), Mr Tripodi and Tony Kelly used their positions as MPs to benefit the Obeid-linked company, Australian Water Holdings.Credit: Peter Rae