http://www.abc.net.au/pm/content/2014/s3977831.htm
During 2008, those costs began to accelerate from about $200,000 a month up to over $800,000 a month. Eventually, Sydney Water stopped the paying the bills, asked for an audit, and threatened legal action.
Mr Watson asked Senator Sinodinos about the escalating costs.
GEOFFREY WATSON (voiceover): Did you or did you not do something?
ARTHUR SINODINOS (voiceover): Not specifically, no
ASHLEY HALL: Mr Watson also quizzed Senator Sinodinos about two warnings he allegedly received about the company's run-away costs.
The inquiry's heard the second warning came from an investor with AWH, Rod De Aboitiz, who says he told Senator Arthur Sinodinos in 2010 that the company was racking up massive debts, with extremely high salaries and excessive costs, including tens of thousands of dollars in donations to the Liberal Party.
But today, Senator Sinodinos said according to his recollection, the meeting was focussed primarily on the chairman's remuneration.
Senator Sinodinos also says he was unaware the company was in such dire financial straits in September 2011 that it had to seek a $400,000 cash injection from the family of the disgraced former Labor minister Eddie Obeid to pay the tax office.
The Senator says he also didn't know the company had given $75,000 to the NSW branch of the Liberal Party.
GEOFFREY WATSON (voiceover): Are you denying knowing that the company of which you were director and deputy chairman was donating to the party of which you were the treasurer?
ARTHUR SINODINOS (voiceover): Yes.
GEOFFREY WATSON (voiceover): Did you know at the Liberal Party end in your capacity as treasurer that Australian Water Holdings was making donations to the Liberal Party?
ARTHUR SINODINOS (voiceover): Not that I can recollect at the time.
ASHLEY HALL: Senator Sinodinos acknowledged he'd been engaged by AWH as a "door opener", and for his political connections and skill. But he denied it was inappropriate to use those contacts as an entree to the halls of power to push a lucrative public-private partnership deal.
GEOFFREY WATSON (voiceover): There was pressure being brought to bear on senior Liberal Party politicians. Do you agree?
ARTHUR SINODINOS (voiceover): Well representations were being made, yes.
ASHLEY HALL: Did he disclose to the Premier Barry O'Farrell and the Finance Minister Greg Pearce that he had "skin in the game" and would personally benefit from the deal?
"They didn't ask," he said, and went on: "I think they would have understood officers of the company would have benefitted".
On the way out of the inquiry, Senator Sinodinos spoke to the media.
ARTHUR SINODINOS: I'd like to thank the commission for the opportunity to come here and put my side of the story, and the work of the commission is important, and as a public official in my own right, I know how important it is that we get the bottom of the truth, and what I attempted to do here today is tell the whole truth and nothing but the truth.
REPORTER: How damaging is your lack of memory?
ARTHUR SINODINOS: I've answered questions… it's… have answers… I've answered truthfully.
REPORTER: A lack of memory is pretty damaging for a politician though, isn't it?
ARTHUR SINODINOS: I've answered questions truthfully.
I love it.
