http://www.theaustralian.com.au/national-affairs/state-politics/arthur-sinodinos...Arthur Sinodinos ‘warned about AWH’
MARK COULTAN and LEO SHANAHAN The Australian March 21, 2014 12:00AM
ARTHUR Sinodinos was warned that the cashflow and costs of Australian Water Holdings were out of control months before he took the chairmanship at the privately owned firm.
Rod De Aboitiz, whose family invested in the business, told the NSW Independent Commission Against Corruption yesterday he met Senator Sinodinos, who was then out of politics and an AWH director, in May 2010 to warn him about the financial position of the company and voice his concerns about its solvency.
At the time the company was in financial trouble, with no revenue but its 10 employees were paid huge salaries and living extravagant lifestyles including expensive meals, such as $900 dinners at Sydney’s upmarket Rockpool restaurant, and trips.
Mr De Aboitiz, who is a former chief financial officer of investment bank Rothschild, invested $1 million of his family’s trust in AWH through his relationship with the company’s chief executive Nick Di Girolamo, who was an old school friend.
But after seeing an extract of the company’s accounts, he realised that its costs were out of control and became concerned about his investment.
He went to see Senator Sinodinos at his then National Australia Bank offices. “I wanted to make sure that there was no doubt, at the executive level of the board and the non-executive level of the board, there was a clear understanding that they needed to get their affairs in order,” he told the commission.
He said he told Senator Sinodinos: “Arthur, you know that solvency’s a big issue for a director. You’re a director. You’re an experienced person. This is silly. I understand Sydney Water may be playing hard ball with you with respect but surely, surely you are in control of your own cashflow.”
“He assured me the board was on top of it and it was taken care of,” Mr de Aboitiz said.
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