Senator Arthur Sinodinos departs after giving evidence at the Independent Commission Against Corruption (ICAC) hearing in Sydney, Friday, Sept. 12, 2014. The current ICAC investigation, Operation Spicer, is investigating illegal political donations used to bankroll the NSW Liberal Party's 2011 state election campaign.
Senator Arthur Sinodinos departs after giving evidence at the Independent Commission Against Corruption (ICAC) hearing in Sydney, Friday, Sept. 12, 2014. The current ICAC investigation, Operation Spicer, is investigating illegal political donations used to bankroll the NSW Liberal Party's 2011 state election campaign. AAP Image - Britta Campion

Sinodinos to testify over 'shadowy' LNP donations

A Senate committee will investigate the shadowy world of "associated entities" linked to political parties, after the crossbench and Greens backed a Labor motion for an inquiry.

The inquiry was opposed by government senators on Tuesday night, as it also called specifically on Senator Arthur Sinodinos to give evidence about his dealings with the Liberal-linked Free Enterprise Foundation.

Sen Sinodinos was treasurer of the New South Wales Liberal Party during a period the foundation, an "associated entity" under electoral laws, made several donations to the party but failed to notify the state's electoral commission.

The NSW Electoral Commission has held back more than $4 million in public funding from the Liberal Party and said the failure to disclose the donations were a breach of the state's laws.

Sen Sinodinos has strenuously denied any involvement in the donations or the failure to disclose them.

On top of the examining the role and oversight of associated entities in political party funding, the Senate's Finance and Public Administration Committee will also consider federal donations laws and donations disclosure rules.

The committee is expected to report its finding on May 4 this year, a day after the federal budget is handed down.


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