Cabinet Secretary Arthur Sinodinos could face a range of punishments, including being censured by the Senate, for refusing to appear before an inquiry into the controversial Free Enterprise Foundation and similar fundraising bodies.
In an interim report, the committee conducting the inquiry has outlined possible actions against Senator Sinodinos over his refusal to appear despite being directed to do so by the Senate.
They include the Senate forcing him to give a public explanation of his reasons for refusing to attend; directing him to attend a further hearing; referring him to the Privileges Committee; censure; and considering whether he is in contempt.
"The committee has decided to table this interim report in order to report non-compliance of the Senate order by Senator Sinodinos to the Senate," inquiry chair, Labor Senator Jenny McAllister, writes in the report.
It is expected that the Senate will consider what, if any, action to take against Senator Sinodinos as early as Monday.
An interim dissenting report by Coalition committee members - senators Cory Bernardi and Joanna Lindgren - describes the inquiry as "unworthy of the Senate".
"Never before has the Senate directed any of its ministers to appear before one of its committees. Ministers are accountable through questions with and without notice, and through the estimates process," it says.
"The motion establishing this inquiry stands without precedent and violates well-established Senate practice."
It says Coalition committee members asked for Labor members, including Opposition Leader Bill Shorten, to be called before the inquiry but the committee did not agree. It notes the sole witness was Australian Electoral Commissioner Tom Rogers.
The inquiry "has been a partisan political exercise, unworthy of a Senate Committee and unworthy of further consideration by the Senate," the report concludes.
The snap inquiry was established on April 19 and is due to report before next Wednesday.
It was prompted by a NSW Electoral Commission statement last month that the Liberals used the Free Enterprise Foundation to "channel and disguise" donations, including from banned donors, before the 2011 NSW election.
The commission said it relied on evidence in 2014 to the NSW corruption watchdog by party officials and "through them" evidence of the "involvement" of finance committee members including Senator Sinodinos "in the arrangements touching the foundation".
Senator Sinodinos chaired the NSW Liberal finance committee and was party treasurer at the time but has insisted he had no knowledge of the foundation being used to channel illegal donations.
The Senate passed terms of reference directing Senator Sinodinos "to appear before the committee to answer questions".
But the night before his scheduled appearance on Thursday, Senator Sinodinos wrote to the committee to say he would not abide by the direction, describing the direction as "both unprecedented and objectionable".
