Parakeelia is also registered as being associated with the party. Senator Arthur Sinodinos was honorary treasurer of the NSW Liberals when the unlawful donations were made. Credit:Andrew Meares Last financial year, Parakeelia transferred $500,000 to the federal Liberal division, making it the party's second-biggest single source of funds. The company transferred a total of $600,000 to the party in the previous two financial years. Speaking during an uncomfortable Sky News encounter on Wednesday, Senator Sinodinos confirmed government MPs used the company but said he was unsure if taxpayers' money was involved. "I don't know if it is taxpayer money, but money is provided to them yes," he said.

Asked if his own office had paid the firm with taxpayer funded allowances, Senator Sinodinos said he would "have to check". "I think I would have, yes". He said MPs could also pay money from their own pocket or from their offices, with the service providing information on voters to MPs. Pressed by host David Speers, Senator Sinodinos said the questions were better directed to Liberal Party officials. "We use it to try and do our electorate business."

Asked whether paying the company was a legitimate use of taxpayer funds, Mr Sinodinos said he believed it was. "Both sides of politics, as I understand it, have companies which run data registers and the like," he said. "That would be used to provide information which we gather on electors and the like, and we use it to try and do our electorate business." "I am not quite sure what you are getting at," he said. Finance Minister Mathias Cormann brushed aside questions about the donations on Thursday, saying only that similar arrangements existed for other parties. He did not directly address questions about Parakeelia's contributions to the Liberal Party.