Assistant Treasurer Arthur Sinodinos has done nothing to reinforce his suitability for the role during his latest appearance at the NSW Independent Commission Against Corruption (ICAC), informed sources have told insuranceNEWS.com.au.

Senator Sinodinos, whose portfolio has been vacant since he stood down in March while ICAC heard allegations related to Australian Water Holdings, a company he chaired, appeared again at an ICAC hearing on Friday.

He fielded questions about his time as chairman of the NSW Liberal Party’s finance committee – during which prohibited donations were funneled to the party – telling the commission he did not take personal responsibility for the matter.

Senator Sinodinos has previously told ICAC he knew nothing about large donations to the Liberal Party by Australian Water Holdings. On Friday he said he was not aware of the Free Enterprise Foundation, which forwarded $700,000 in prohibited donations to the NSW party.

Following the hearing in Sydney on Friday he told media he is now looking forward to returning to the ministry.

“At no stage has any allegation of corruption ever been made against me,” he said. “It is now time to focus on going back to work with the Abbott government.”

But an informed source in Canberra has told insuranceNEWS.com.au that despite the lack of allegations of corruption, Senator Sinodinos “still comes out of this looking clumsy and silly”.

“His admitted lack of oversight and knowledge about what was going on does raise questions about his suitability for the Assistant Treasurer portfolio,” the source said.

He says no one in government expects Senator Sinodinos to hold on to the portfolio.

“We’re getting close to the time where a ministerial reshuffle is needed, and Sinodinos isn’t going to get a seat in Cabinet, or possibly even win a minor portfolio. He’s raised too many questions about his oversight.”

Last week insuranceNEWS.com.au reported that Canberra insiders are tipping Melbourne MP Josh Frydenberg to become Assistant Treasurer.