Queensland Premier Campbell Newman has become the latest political figure to be embroiled in an inquiry into the Obeid-linked Australian Water Holdings (AWH).

The Independent Commission Against Corruption (ICAC) has heard a $5,000 donation was demanded as the price of a meeting with Mr Newman when he was Brisbane's lord mayor in 2007.

The current New South Wales head of the Australian Hotels Association, Paul Nicolaou, has given evidence to the ICAC about a meeting he organised between Mr Newman and AWH chief executive Nick Di Girolamo.

Mr Nicolaou said AWH was asked to make a $5,000 donation to meet with Mr Newman.

Counsel assisting the ICAC, Geoffrey Watson, asked if the money was "the price of meeting Campbell Newman".

Mr Nicolaou replied: "Yes, if you look at it that way."

The inquiry was also told about an email from June 2007, in which Mr Nicolaou wrote to Mr Di Girolamo.

"The Lord Mayor of Brisbane is happy to see you... The person whom I am liaising with on your behalf would like you to donate the $5k as soon as possible."

Queensland Deputy Opposition Leader Tim Mulherin said the Premier must explain whether this was "the way business was done".

The ABC has approached Mr Newman for comment but he is flying to South Korea for an Asian trade mission.

A State Government spokesman said it is unlikely Mr Newman would have agreed to the meeting if he had known that a donation had been solicited.

He said Mr Newman does not personally solicit donations.

The inquiry heard the $5,000 donation should be made out to a fundraising body called 'Forward Brisbane Leadership'.

At the time the body was run by Greg Bowden, who is now a senior advisor to Brisbane's current Lord Mayor Graham Quirk.

The organisation was closed in 2012 and a spokesman for Councillor Quirk said the donation was returned last month, seven years after it was made.

The spokesman says the Lord Mayor does not request payment for meetings.

Sorry, this video has expired Qld Premier Campbell Newman embroiled in ICAC inquiry ( Adrian Raschella )

Nicolaou's Solutions R Us under spotlight

Mr Nicolaou also told the ICAC his company Solutions R Us was on a retainer with AWH for four years.

The inquiry heard there are no records of what he did for the $225,000 he was paid, but he said he introduced AWH to clients and was asked to get Mr Di Girolamo entry to the Qantas Chairman's Lounge, but failed.

He said he could "provide emails for the commission" about the work he did.

Mr Nicolaou insisted that over four years he never discussed the retainer he was on with his friend, Senator Arthur Sinodinos, who was also on the AWH board.

"I didn't speak to him because I didn't report to him, I reported to Nick Di Girolamo," he said.

Mr Watson asked: "Why wouldn't you mention it casually, such as, 'Gee Arthur, thanks for the money'?"

Mr Nicolaou said he had already told Senator Sinodinos he would be doing consultancy work for him and it did not cross his mind to mention it again.

Mr Nicolaou acknowledged that at the time he was paid the retainer he was an executive of the Millennium Forum, the NSW Liberal Party's main fund-raising body.

The ICAC alleges AWH misused funds from Sydney Water for Liberal Party donations and executive salaries.

The hearing continues.